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OECD Warns Middle East Conflict Threatens Global Growth Outlook

The Organization for Economic Cooperation and Development cautioned that prolonged Middle East hostilities pose mounting risks to worldwide economic expansion. OECD Secretary General Mathias Cormann said the conflict creates simultaneous headwinds: downward pressure on growth paired with upward pressure on inflation, particularly through elevated energy costs. Financial leaders gathered at a Group of Seven meeting acknowledged oil-driven inflation as a primary threat to economic prospects globally. Japan's faster-than-expected early-year growth provided some optimism for central bank rate increases, though policymakers flagged Middle East uncertainties as a major concern. Poland's monetary authorities noted the conflict may damage economic expansion more severely than domestic inflation pressures. Bond markets reflected heightened volatility as investors reassessed growth trajectories across major economies.