Oil containers are pictured at the Port of Fujairah, as the war in the Middle East limits marine traffic in the Strait of Hormuz. Photo taken in Fujairah, UAE on May 6, 2026.
Photo Credit: REUTERS/Amr Alfiky

Global economic implications of the 2026 Middle East war

This year’s Middle East war has driven up energy prices, disrupting economic activity around the world. If these effects persist for one to three years, they will slow global growth, hurting emerging economies more than advanced economies, write Warwick McKibbin, Marcus Noland, and Geoffrey Shuetrim.

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