Oil surpasses $130 amid IMF war warning

The International Monetary Fund expects the economy of the Middle East, North Africa, and Pakistan to contract by 1.3% in 2026, but anticipates growth of 6.6% in 2025, based on the easing of conflicts, the resumption of trade activities, and energy production. The Fund warned that ongoing disruptions to energy and trade could prolong the negative impacts and potentially lead to oil prices rising to $130 per barrel in the worst-case scenario. It called on countries to enhance economic resilience, maintain price stability, diversify activities, and temporarily direct support to the most affected groups. Inflation is also expected to rise over the current year, especially if the conflict continues into the second quarter of the next year.

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