On Tuesday, CNN reported that the International Monetary Fund has reduced its forecast for global economic growth. The IMF expects global growth of 3.1% in 2026, a 0.2 percentage point downgrade from the January forecast.
The IMF also warned that the outlook could have been worse if the conflict with Iran continued and oil prices risen even further. According to The Mirror, this comes as the United Nations Development Program (UNDP) revealed in another report that 32 million people could face poverty as a result of the war.
In a CNN update, the network cited Pierre-Olivier Gourinchas, the IMF chief economist. He stated, “The global outlook has abruptly darkened following the outbreak of war in the Middle East.”
EISEN: I wonder if you agree with the IMF assessment that the war is going to hurt the economy?
HASSETT: I disagree with the forecast for America. The fact is that our economy is really running on all cylinders. pic.twitter.com/h8y5xdyqhS
— Aaron Rupar (@atrupar) April 14, 2026
As reported by The Guardian, the UNDP also noted that the world is facing a “triple shock,” with crises in energy and food, along with weaker economic growth.
Former Belgian Prime Minister Alexander De Croo said, “A conflict like this is development in reverse. Even if the war stops, and a ceasefire is obviously very very welcome. But the impact is already there.”
He added, “You will see an enduring impact, especially in the poorer countries, where you push people back into poverty. That’s the most heartbreaking element. The people being pushed into poverty are very often the people who used to be in poverty, got out of it, and are now being pushed back.”
The Guardian also noted that energy prices have risen significantly since the conflict with Iran began.
Recently, a ceasefire temporarily lowered oil prices, before rising again after peace talks collapsed, as reported by the BBC.
As the negotiations failed to reach a conclusion, Donald Trump announced, the U.S. Navy “will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz.”
U.S. Central Command commander Brad Cooper recently stated that the blockade has gone into effect, as CNBC reported.
He said, “A blockade of Iranian ports has been fully implemented as U.S. forces maintain maritime superiority in the Middle East…U.S. forces have completely halted economic trade going in and out of Iran by sea.”
U.S. President Donald J. Trump spoke about ending the Iran War in an unreleased interview filmed Tuesday with Fox News.
Trump: “I had to divert because if I didn’t do that, right now, you would have Iran with a nuclear weapon. And if they had a nuclear weapon, you would… pic.twitter.com/HkN2Slsxlz
— OSINTdefender (@sentdefender) April 15, 2026
However, another report by The Guardian mentioned that Trump had recently hinted at resuming peace talks with Iran. He told a New York Post reporter to stay in Pakistan, as talks with Iran could resume within two days.
He said, “You should stay there, really, because something could be happening over the next two days, and we’re more inclined to go there.”
Vice President JD Vance said something similar to Fox News, stating, “The big question from here on out is whether Iranians will have enough flexibility.”
