A recent report by the Organization for Economic Cooperation and Development (OECD) highlights the severe repercussions of prolonged energy supply disruptions stemming from the ongoing war in Iran. The conflict is projected to be the primary factor influencing the global economic outlook, with growth potentially slowing from 2.1% in 2026 to 1.8% in 2027. This downturn could lead to recessions in several countries and increased unemployment rates. OECD chief economist Stefano Scarpetta noted that inflation could rise by 0.4 percentage points in 2026 and 1.3 percentage points in 2027, driven by high commodity prices and reduced demand. Developing nations and Asian economies heavily reliant on oil and gas are expected to face the most significant challenges. Conversely, if energy production through the Strait of Hormuz returns to pre-war levels, growth could rebound to 3.1% in 2027. The OECD stresses the urgent need for investment in diverse energy sources to mitigate future vulnerabilities. Additionally, rising defense spending may not enhance productive capacity unless it fosters innovation in non-defense sectors. Scarpetta warns that policymakers must navigate complex decisions as central banks may need to respond to broadening price pressures.