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Sat, 18 Apr 2026

Sat, 18 Apr 2026 Faisal Islam: What people in power think the impact of the Iran war will be

Faisal Islam talks to some of the world's most powerful people about the conflict and the economy.

* International finance leaders gathered at the IMF and World Bank meeting in Washington DC expressed concern over the economic impact of the US-Iran conflict, particularly on global energy prices.
* The world faces a "slower moving shock" with long-term implications, according to Kristalina Georgieva, IMF managing director.
* Economically poorer countries are particularly vulnerable to rising energy and food costs, with the World Bank readying support funds of up to $100bn to help them cope.
* Despite tensions remaining high, some officials expressed hope that the crisis has peaked following news of Iran's temporary reopening of the Strait of Hormuz.
* US Treasury Secretary Scott Bessent downplayed concerns about short-term economic pain and emphasized the need for a long-term focus on security.
* International leaders discussed various measures to mitigate the impact of the conflict, including increasing domestic energy production and investing in renewable energy sources.
* The UK Chancellor Rachel Reeves announced plans to maximize production from existing North Sea fields and break the link between electricity prices and rising gas prices.
* Bank of England Governor Andrew Bailey cautioned against raising interest rates to combat higher inflation caused by the war, instead advocating for de-escalation.
* Other concerns discussed at the meeting included private credit, AI cybersecurity vulnerabilities, and overbuilding in technology and AI.