International Monetary Fund Managing Director Kristalina Georgieva has warned that the Iran war will lead to higher inflation and slower global growth, reports Reuters.

Before the war, the IMF expected a small upgrade in its projection for global growth of 3.3 per cent and 3.2pc in 2026.

“Instead, all roads now lead to higher prices and slower growth,” Georgieva said.

She added that even a rapid end to the war would result in a dip in growth and a rise in inflation, with greater risks the longer the war lasts.