The International Monetary Fund (IMF) has released a bleak economic outlook, projecting a slowdown in global growth to 3.1% for 2023 and 3.2% for 2027, primarily due to rising inflation exacerbated by the ongoing war in Iran. The conflict is expected to disrupt energy supplies, particularly affecting low-income developing nations that are already vulnerable economically. The IMF report highlights that energy importers will face increased costs, and Gulf region energy exporters will also suffer from conflict-related damages and production closures. Countries supplying migrant workers may experience remittance losses, further straining their economies. In response to the crisis, South Asian nations like Pakistan, Nepal, and Sri Lanka are implementing measures to reduce energy consumption. The IMF stresses that global cooperation is essential to mitigate the economic fallout, advocating for policies that promote stability and the reopening of critical trade routes like the Strait of Hormuz. Without such measures, the economic impacts could escalate, leading to higher global interest rates and tighter financial conditions.