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The Terrible Impact Of The Israel Vs Iran War On The World Economy After The US Intervenes

The International Monetary Fund (IMF) has warned that a terrible impact could occur after the United States (US) airstrike on Iran. The impact will not only occur in the energy sector, but could also affect global economic growth. 

IMF Managing Director Kristalina Georgieva sees tensions between the US and Iran as increasing uncertainty amidst already uncertain global conditions. 

"We see this as another source of uncertainty in a very uncertain environment," Georgieva said in an interview with Bloomberg TV, Monday (6/28/2025). 

According to her, the biggest impact so far has been seen in energy prices, which the IMF is also closely monitoring. However, Georgieva considered that there was a possibility of secondary and tertiary impacts. 

"For example, if there are more blows that affect the economic growth prospects in major economies, then it could trigger a downward revision to the global growth outlook," she explained. 

Brent oil prices had jumped as much as 5.7% to US$ 81.40 per barrel in early Asian trading on Monday, before paring most of the increase in high trading. 

The IMF also downgraded its global growth outlook for this year in April, warning that a US-led trade reset would slow economic growth. 

Georgieva said that trend has continued through the first two quarters of this year. While the world has avoided a recession, there is also greater uncertainty that is likely to weigh on growth prospects. 

The world is also bracing for Iran’s response after an unprecedented US airstrike on the country’s nuclear facilities, which has raised concerns among traders and governments around the world. 

Tag: Global Economic IMF Iran Israel