World Bank warns of economic contraction from potential US-Iran conflict escalation

The World Bank projects a significant global economic slowdown to 1.3% growth by 2026, citing a potential prolonged conflict involving Iran as a primary catalyst. This forecast highlights systemic risks including elevated interest rates, food insecurity, and a potential systemic debt crisis for vulnerable nations. The assessment indicates current geopolitical tensions between the US and Iran are approaching the institution's worst-case scenario for global economic stability.