Khaberni - World Bank President Ajay Banga said on Friday that the Iran war will have cascading effects on the global economy, even if the fragile ceasefire announced by US President Donald Trump is maintained.
He added that the damage will be much deeper if the ceasefire collapses and the conflict escalates.
He said that inflation could rise by 200 to 300 basis points, with a much bigger impact if the war continues.
The war, which has claimed the lives of thousands of people across the Middle East, has led to a 50% increase in oil prices, with disruptions to oil, gas, fertilizers, helium supplies, and other commodities, as well as affecting tourism and air travel.
Reuters
