The United Nations has cut its global growth forecast in light of the war involving Iran, Israel, and the United States sent shockwaves through energy markets and global trade. Rising oil prices and shipping disruptions in the Strait of Hormuz are now putting pressure on economies across the world.
The UN now expects the global economy to grow by 2.5% in 2026, lower than earlier forecasts of 2.7%. A 0.2% lower growth forecast means the global economy is expected to grow more slowly than experts had previously predicted. Even a small drop can mean weaker trade, fewer jobs, higher prices, and slower business activity around the world.
Beyond that, officials warn that growth could constrict even further if energy prices continue climbing.
How the Strait of Hormuz Became a Global Economic Threat
The Strait of Hormuz is one of the world’s most important shipping routes for oil and natural gas. Before the conflict, around 130 ships crossed the
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