The International Monetary Fund has warned the Middle East is moving toward recession, with the Iran conflict fuelling an economic slump across the region and sending energy costs up. Corporate outlooks have deteriorated in response to the spike in oil prices.

The IMF also cut its Romania forecast, projecting a 0.5% contraction in 2026 with inflation sitting at 8.2%. In Australia, the downturn is showing up in the property market, where auction clearance rates have dropped under 50% for two weeks running and house prices are declining across the country.