IMF Warns of Inflation Rise Due to Iran War Impact

On Thursday, the International Monetary Fund (IMF) expressed concerns regarding the impact of the ongoing war in Iran on global inflation and economic output. IMF chief spokesperson Juli Kozack stated that the conflict, which escalated following US and Israeli strikes on Iran on February 28, has resulted in oil prices remaining above $100 per barrel.

The IMF estimates that this situation could lead to a two percentage point increase in global inflation and a one percentage point decrease in economic output. The war has created a blockade in the Strait of Hormuz, a critical waterway for 20% of the world's oil supply, causing energy prices to surge.

Kozack emphasized that countries are experiencing the effects of the conflict in various ways, particularly concerning commodity prices, which are influenced by the structure of their economies. She noted that disruptions in fertilizer shipments and transport due to the conflict raise the risk of increased food prices, depending on the duration of the conflict.