Christine Lagarde Warns Iran War Straining Global Economy

European Central Bank President Christine Lagarde warned that the war in Iran is straining the global economy, with more disruption likely ahead. She made the comments at the International Monetary Fund's spring meetings.

The IMF separately warned that the Middle East conflict will slow global economic growth. The war has stopped the world economy in its tracks after it had largely weathered several major crises without falling into recession.

The global economy had been recovering from the pandemic, Russia's war in Ukraine, and soaring inflation. But President Trump's decision to start a war in Iran has created new economic uncertainty.

Lagarde discussed the war's impact on the euro-zone economy during interviews at the IMF meetings. The conflict is expected to affect energy prices and supply chains worldwide.

Economists worry that another major conflict could push the world economy toward recession after years of avoiding one despite multiple crises.