IMF says duration of Iran war and infrastructure damage will shape global economic impact

Riyadh, March 3, 2026 (Saudi Arabia Breaking News) – The International Monetary Fund said the war’s impact on the global economy will depend on how long it lasts and how much damage it causes to infrastructure and industries in the region.

The IMF flagged the risk that an energy price spike could prove persistent rather than short-lived.

IMF First Deputy Managing Director Dan Katz told the Milken Institute Future of Finance conference in Washington that the conflict “certainly has the potential to be very impactful on the global economy” across metrics including inflation and growth.

The fund said it will monitor physical damage to infrastructure and the effects on tourism, air travel and energy production facilities.