The International Monetary Fund warned that an ongoing Middle East conflict disrupting oil, gas, and fertilizer supplies could lead to higher global prices and slower economic growth.

It said rising energy and food costs would reduce living standards, strain businesses, and potentially force central banks to raise interest rates to control inflation.

The IMF noted that heavily indebted countries may struggle to provide financial support to offset the impact.

While some energy-exporting nations may benefit from higher prices, most countries would face economic pressure, The Guardian has reported.

The report also highlighted risks of prolonged inflation, supply chain disruptions, and lasting damage to the global economy depending on how the conflict evolves.