The International Monetary Fund has warned the Middle East is heading for recession, with the Iran conflict driving 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 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 softening across the country.