JAKARTA - International Monetary Fund (IMF) Managing Director Kristalina Georgieva said the global economic outlook would significantly worsen if the Iran conflict continued until 2027 with oil prices at around 125 US dollars (Rp2.1 million) per barrel.
"If this situation continues until 2027 and the price of oil is around 125 US dollars, more or less, then we have to wait for much worse results," Georgieva said at the Milken Institute event on Monday, April 4, reported by ANTARA from Sputnik.
He noted that this scenario could push inflation higher and cause inflation expectations to become uncontrollable.
At the end of February, the United States and Israel began launching attacks on a number of targets in Iran, causing damage and civilian casualties.
In early April, the United States and Iran announced a two-week ceasefire and held talks in Islamabad, which unfortunately ended without results.
US President Donald Trump has extended a ceasefire to give Iran time to put together a "unified proposal".
The escalation of the conflict almost halted traffic in the Strait of Hormuz, which is an important route for the shipment of oil and liquefied natural gas from Persian Gulf countries to global markets, leading to a rise in fuel prices.
However, on Monday (4/5), Trump said he started to see energy prices drop and predicted that prices would fall significantly after the war ended.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
