Economy

IMF on War: “All Roads Lead to Higher Prices”

The International Monetary Fund, IMF, warns that the war the US and Israel are waging against Iran could worsen the prospects for economies that have begun to recover from previous crises, writes Bloomberg.

The IMF points to countries in Africa and Asia that are heavily dependent on oil imports and that already have difficulty accessing supplies.

“All roads lead to higher prices and slower growth,” writes the IMF in a blog post.

The world may also end up in a kind of middle ground where tensions between countries remain and energy becomes too expensive. At the same time, inflation may prove difficult to tackle, with continued uncertainty and a geopolitical risk, writes the IMF. 

 

Iran Approves Bill on Strait of Hormuz Tariffs

Iran’s National Security Committee has approved a bill to impose tariffs on ships passing through the Strait of Hormuz, Bloomberg reports, citing Fars news agency.

If enacted, the bill would explicitly ban Israeli and American ships from passing through the Strait. The ban would also apply to “any country that imposes unilateral sanctions on Iran,” Bloomberg writes.