World Bank Report: US-Iran War is Taking the Global Economy to Covid Level

The Washington-based international financial institution, the World Bank, has warned that the ongoing military tensions between the US and Iran are putting significant pressure on the global economy. The organization's latest economic forecast says that instability in the energy market and disruptions in the supply chain could slow global growth.

According to the World Bank's analysis, although global economic growth was expected to be relatively high at the beginning of the year, that forecast had to be revised due to the recent geopolitical situation. In particular, the increase in the prices of energy and raw materials is putting pressure on the economies of various countries and creating the risk of inflation.

The organization says that instability in important maritime trade routes in the Middle East is disrupting energy transportation. As a result, uncertainty has arisen in the supply of oil and gas in the international market. At the same time, it has also started to have a negative impact on the markets for fertilizers and agricultural inputs.

According to economists, if high energy prices continue for a long time, production costs will increase and food prices may also increase. Developing countries are likely to be the most affected.

The World Bank also noted that if the conflict is not resolved quickly, global growth could decline further and inflationary pressures could increase in many countries. If the situation persists, the organization expressed concern that the global economy could face challenges similar to those of the major crises of a few years ago.

According to analysts, it is important to emphasize international cooperation, stable energy supplies and diplomatic solutions to deal with the current situation.