The head of the International Monetary Fund, Kristalina Georgieva, has raised concerns about the potential impact of US strikes on Iran on global economic growth. Georgieva emphasized the importance of monitoring energy prices closely, as any rise in oil prices could have widespread effects on the global economy. The recent decision by the Iranian parliament to shut down the vital shipping channel through the strait of Hormuz has added to the uncertainty, as this key waterway facilitates a significant portion of the world’s oil consumption.

The possibility of a prolonged closure of the strait could lead to an oil supply shock, resulting in increased energy prices, inflation, and a negative impact on economic growth. While the initial spike in oil prices following the US airstrikes has somewhat subsided, experts warn that further disruptions in energy flows in the Gulf region could pose significant economic risks. US Secretary of State Marco Rubio has cautioned Iran against closing the strait, highlighting the potential dire consequences for both Iran and global oil markets.

Analysts believe there is a clear risk of energy-related attacks, particularly from Iranian-backed militias in Iraq, which could further escalate tensions in the region. The uncertainty surrounding the situation has kept global markets on edge, with mixed reactions observed in stock markets across different regions. As the situation evolves, it remains crucial to closely monitor developments in the Middle East to assess the potential economic repercussions on a global scale.