Iran War Disrupts Global Energy
Analysis based on 6 articles · First reported Jun 03, 2026 · Last updated Jun 03, 2026
The prolonged disruption of energy supplies from the Middle East, particularly through the Strait of Hormuz due to the Iran war, is projected to severely impact the global economy. This will lead to sharply higher energy prices, inflation, and potential recessions in some countries, significantly affecting energy-dependent economies and global growth rates. The OECD's report highlights a substantial weakening of the economic outlook.
The OECD (OECD) released a report detailing the severe blow to the global economy from prolonged energy supply disruptions in the Middle East due to the Iran war. The conflict between Iran and the United States has led to the closure of the Strait of Hormuz, choking off about a fifth of the world's crude oil, fuel products, and natural gas supplies. This disruption is expected to send some countries into recession, spread inflation, and increase unemployment. Global growth is projected to slump significantly, with the OECD's prolonged disruption scenario forecasting global growth to slow from 3.4% last year to 2.1% this year and 1.8% in 2027. OECD Secretary-General Mathias Cormann emphasized the weakening global economic outlook since the conflict's start and the escalating economic and social costs with continued disruptions. A United Nations study also warned of the impact of higher energy prices on almost a billion people in poorer countries.
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