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Tue, 14 Apr 2026

Tue, 14 Apr 2026 'Bit of pain' worth long-term security from Iran, Bessent tells BBC

US Treasury Secretary said a "small bit of economic pain" was worth it to eliminate the threat of Iranian strikes on Western capitals.

* US Treasury Secretary Scott Bessent says a "small bit of economic pain" is worthwhile for long-term international security, citing the threat of Iranian nuclear strikes against Western capitals.
* The IMF warns that the US-Israel war with Iran could plunge the global economy into recession, with a worst-case scenario where oil, gas and food prices spike and remain high this year and next.
* In a worst-case scenario, global growth could fall below 2% in 2026, which would mean a close call for a global recession.
* Energy prices have soared since the war began, with oil prices reaching an average of $110 per barrel this year and hitting $125 in 2027.
* The IMF predicts that inflation could reach as much as 6% next year, forcing central banks to increase interest rates to slow the pace of price rises.
* The global economy is threatened by the outbreak of war in the Middle East, with the IMF warning of spiraling inflation, increased unemployment and food insecurity in some countries.
* However, if the conflict ends soon, the IMF predicts that global growth would ease to 3.1% for 2026, and that many oil-exporting nations will recover quickly.
* The UK is expected to be one of the hardest hit by the energy shock from the Iran war, with a forecast of 0.8% economic growth this year.
* Oil exporting nations in the Gulf are likely to see a sharp slowdown in economic growth or even a contraction this year, according to IMF forecasts.
* However, Russia is expected to benefit from the surge in oil prices, with its economy growing by 1.1% this year and next.
* The European Commissioner for finance has warned against easing sanctions on Russia, arguing that it would give additional revenues to "Russia's war machine".