Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), expressed concerns about the global economy's future amid the ongoing conflict in the Middle East. She warned that if the war continues into 2027 and oil prices rise to $125 per barrel, the economic outlook could worsen significantly. Previously, the IMF had projected a minor growth slowdown to 3.1% and a slight increase in inflation to 4.4% under the assumption of a short-lived conflict. However, Georgieva stated that this scenario is becoming increasingly unlikely. The IMF's adverse scenario now predicts global growth slowing to 2.5% in 2026 with headline inflation reaching 5.4%. The severe scenario forecasts even lower growth at 2% and inflation at 5.8%. Additionally, Mike Wirth, Chairman and CEO of Chevron, noted that the closure of the Strait of Hormuz, a crucial oil supply route, could lead to shortages, particularly impacting economies in Asia. Georgieva highlighted the rising costs of fertilizers, which have surged by 30% to 40%, potentially driving food prices up by 3% to 6%. She urged policymakers to recognize the seriousness of the situation and adjust their strategies accordingly to avoid further economic strain.