Key insights
- The IMF warns that the war in the Middle East, specifically U.S. and Israeli strikes against Iran, is creating a global economic shock. This is leading to tighter financial conditions and dimming the outlook for many economies, including the US, that were recovering from previous crises. This geopolitical uncertainty poses a downside risk for US equities.
By Andrea Shalal
WASHINGTON, March 30 (Reuters) - The war in the Middle East has caused serious disruption to the economies of frontline countries, and is dimming the outlook for many economies that had just started to recover from previous crises, the International Monetary Fund warned on Monday.
In a blog published by the global lender’s top economists, the IMF said the war launched by U.S. and Israeli strikes against Iran on February 28 was causing a global, but asymmetric shock and leading to tighter financial conditions.