IMF Warns of Lasting Economic Scars and Fuel Shortages After Iran Conflict

The International Monetary Fund warns that global diesel and jet fuel shortages could persist for months. The strategic Strait of Hormuz remains effectively closed to most energy traffic, leaving under 10% of pre-conflict shipments passing through. IMF Managing Director Kristalina Georgieva says the disruption will leave “lasting scars” on growth. The fund plans to revise its 2026 global growth forecast downward from an earlier 3.3% projection. Global oil supplies have fallen by about 13% and LNG by 20%, driving inflation higher and straining supply chains. To help vulnerable, energy-importing nations, the IMF will offer up to $50 billion in emergency support. Energy markets remain volatile. Brent crude is hovering near $96 per barrel, while North Sea oil prices have touched record highs. Georgieva cautions that even a permanent peace deal won’t restore the old status quo.

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