IMF Sees 2026 Global Inflation Rising to 4.7% as Iran-Israel Conflict Disrupts Energy Supply

The Iran-Israel conflict has disrupted global energy supply and shipping, pushed up oil prices, and weighed on the world economy, according to Jiemian News. Commercial traffic through the Strait of Hormuz has fallen from 130 to 140 ships a day before the war to single digits, a drop of more than 90%. International oil prices briefly topped $126 a barrel and are still around $88, more than 20% above pre-war levels. The report said higher energy costs have also complicated inflation control in major economies: U.S. consumer prices rose 3.4% year on year in July, with gasoline up 24.6%, while July inflation in the eurozone and the U.K. both reached 2.9%. The International Monetary Fund expects global inflation to rise to 4.7% in 2026, and the World Bank warned that if energy supply disruptions continue, global growth this year could slow to 1.3%.