OECD Cuts Global Growth Outlook As U.S.-Iran War Weighs On Economy, Energy Markets

The updated projections reflect the impact of months of conflict in the Middle East, including disruptions to shipping through the Strait of Hormuz and damage to energy infrastructure across the Gulf, according to the OECD report (Credit: AFP)

The global economy is expected to slow this year as the fallout from the U.S.-Iran war continues to ripple through energy markets, trade routes and investment activity.

The Organization for Economic Cooperation and Development (OECD) lowered its global growth forecast in its June Economic Outlook released Wednesday, saying worldwide economic growth is now projected to ease from 3.4% in 2025 to 2.8% in 2026 before improving to 3.1% in 2027.