The International Monetary Fund has flagged concerns the Middle East is heading for recession, with the Iran conflict causing an economic slump across the region and pushing oil prices higher. Corporate outlooks have deteriorated in response to the surge in energy costs.

The IMF also revised Romania's outlook downward, 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.