Your current location is:FTI News > Foreign News
IMF: A U.S. Strike on Iran Could Lower Global Growth
FTI News2025-07-31 11:34:20【Foreign News】2People have watched
IntroductionForeign exchange eye query foreign exchange platform official website,What foreign exchange dealers are used for,IMF Warns of Escalation in Middle EastKristalina Georgieva, Managing Director of the International M
IMF Warns of Escalation in Middle East
Kristalina Georgieva,Foreign exchange eye query foreign exchange platform official website Managing Director of the International Monetary Fund (IMF), stated on Monday that U.S. strikes on Iranian nuclear facilities have heightened global uncertainty and could trigger wider risks beyond the energy market. She noted, "We are already in a highly uncertain world, and now there is a new variable."
Georgieva mentioned that while the most notable impact currently is on energy prices, "there could be secondary or even tertiary effects," especially if the situation escalates further, posing growth risks to major economies and leading to revised global economic growth forecasts.
Oil Price Volatility Sparks Market Attention
Amid worsening geopolitical tensions, Brent crude oil futures soared by 5.7% during the early Asian trading on Monday, reaching $81.40 per barrel, before plunging dramatically in intense trading. This unusual volatility reflects increasing market concerns over potential disruptions in Middle Eastern supply.
The IMF is closely monitoring the risk premiums of oil and natural gas. Georgieva pointed out that the surge in current option trading volumes and changes in the futures curve indicate expectations of short-term supply tightness. She emphasized that whether transportation disruptions or spillovers to other countries occur is a key focus at present.
Global Growth Forecast Faces Downward Revision Risk
In April, the IMF had already downgraded global economic growth forecasts, warning that the trend of global trade restructuring led by the U.S. poses long-term challenges. Georgieva indicated that although a global recession has been avoided, rising uncertainty may weaken the willingness to invest and consume, hindering growth.
She said, "Uncertainty affects investors' and consumers' decisions. When they stop forextrustindex or spending, the economy slows." This is why geopolitical tensions need special vigilance.
US Economy Stable but Not Yet Ready for Rate Cuts
Regarding the U.S. economic situation, Georgieva stated that inflation in the U.S. shows signs of receding, but the Federal Reserve requires more evidence to initiate rate cuts. She expects that by the end of the year, the Federal Reserve might be in a position to consider rate reductions.
She also highlighted that the U.S. labor market remains strong, with steady wage growth, continuing to support consumption momentum. However, if international market turmoil spreads, this support could face challenges.
IMF Calls for Attention to Ripple Effects and Confidence Shocks
Georgieva concluded by stating that the IMF is assessing whether the current situation could evolve into a broader economic shock. "We must watch whether energy routes are disrupted and how financial markets respond."
She stated that the global economy is "still bearing the pressure," but confidence is fragile. If geopolitical tensions further escalate, the impact on investment and consumption could swiftly transmit, leading to a global economic slowdown.
"I pray that the worst does not happen," she added.
Risk Warning and DisclaimerThe market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
Very good!(7951)
Related articles
- LONMARKETS Trading Platform Review: High Risk (Suspected Fraud)
- Market Insights: April 16th, 2024
- Market Insights: Apr 23rd, 2024
- The UK FCA blacklist has been updated with 18 new entries, including 3 clone firms.
- Orient Markets Review: High Risk (Suspected Fraud)
- Latest Version: FxPro Important Notice: Trading Hours Update During Qingming Festival Holiday
- Compensation Plan for the Transaction Issue on Live 03 in the China Region
- Market Insights: Mar 26th, 2024
- HYHLB Group FX Broker Review: High Risk (Suspected Fraud)
- Market Insights: Mar 29th, 2024
Popular Articles
Webmaster recommended
8.21: Singapore sets a financial framework; police uncover a blockchain money laundering case.
S&P 500 futures (M4) intraday: A new round of rise. (From third
Market Insights: Mar 29th, 2024
Trading isn't a gambler's possession of a clear 'insight'.
Vida Markets Trading Platform Review: Active
CSRC Chairman Wu Qing Sets Regulatory Priorities in Debut
OPEC meeting next week may cut oil production further.
Market Insights: April 9th, 2024