Iran, Middle East and global economy
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The current Mideast conflict is destabilizing the global economy more than the the U.S. economy. But the U.S. economy remains the more unstable of the two.
International Monetary Fund Managing Director Kristalina Georgieva said the war in the Middle East will test global economic resilience and warned that “new shocks in different shapes and sizes” will keep coming.
A senior fund official, Dan Katz, said that the war could be “very impactful on the global economy across a range of metrics,” pointing to inflation and economic growth. Oil and gas prices surged over the last 48 hours since the United States and Israel attacked Iran amid fears about disruptions to global energy supplies.
The U.S.-Israeli attack raises the risk of major oil supply disruption. Iran is the fourth-largest OPEC producer and sits on the critical Strait of Hormuz.
The shipping blockage is backing up through the Middle East’s oil industry, endangering a big chunk of the world’s crude production.
In the most hopeful scenario for the global economy, the latest war in the Middle East ends within a few weeks. The region continues to produce oil and gas. Shipping resumes in th
Suddenly, the chances of cross-asset contamination from oil to bonds to equities to private credit appear to be rising. If Qatar’s energy minister is right, we’re in trouble.
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IMF: Oil Price Shock Tests Global Economic Resilience
IMF Managing Director Kristalina Georgieva warns that the surge in oil and LNG prices resulting from the Middle East war is testing the resilience of the global economy, threatening to increase inflation and slow growth,
March 5 (Reuters) - A temporary surge in oil prices to $100 per barrel could slow global growth by 0.4 percentage point, Goldman Sachs analysts said on Thursday, as a widening conflict in Iran chokes off vital Middle East oil and gas flows.
The machines are just one of the ways in which the world economy is responding to a demographic earthquake. After 60 years in which the fertility rate has halved in rich economies, the number of people of working age in many such countries is either already falling or set to do so soon.