Protracted war in Iran could drag on global growth, push up inflation, OECD warns

The OECD warned that the global economic outlook depends on how long the war in the Middle East lasts, with recession in some countries and sharply higher inflation possible if the conflict extends into next year. The statement highlights material upside risks to inflation and downside risks to growth across the global economy. This is market-wide, risk-off geopolitical news with potential implications for rates, equities, and commodities.

Analysis

The OECD warned that the global economic outlook depends on how long the war in the Middle East lasts, with recession in some countries and sharply higher inflation possible if the conflict extends into next year. The statement highlights material upside risks to inflation and downside risks to growth across the global economy. This is market-wide, risk-off geopolitical news with potential implications for rates, equities, and commodities.