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OECD Warns Global Economy Faces Severe Blow from Prolonged Middle East Energy Disruption

03 June 2026 07:45

The OECD warns that prolonged disruption of Middle East energy supplies due to the Iran war could severely impact the global economy. - Global growth could slow to 1.8% in 2027 under a prolonged disruption scenario.

- Asian economies and poorer countries would be hardest hit. - Traffic through the Strait of Hormuz has dropped by more than 90%.

- A UN study warns that higher energy prices could impact nearly a billion people in poorer countries. The OECD urges targeted, temporary government spending to relieve energy costs and avoid excess debt.

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