The International Monetary Fund (IMF) on Wednesday lowered its global growth forecast for 2026 for the second time this year, warning that renewed fighting in West Asia has increased uncertainty over the world economy.&nbsp;In its latest World Economic Outlook update, the IMF projected global economic growth at 3.0 per cent for 2026, down from the 3.1 per cent forecast it made in April.&nbsp;The updated forecast was prepared before the latest exchange of fire between the United States and Iran.&nbsp;This is the second time in 2026 that the IMF has lowered its global growth outlook. The Fund also expects the world economy to grow at a slower pace than in 2025. The IMF now expects global inflation to reach 4.7 per cent this year, higher than it had projected earlier.&nbsp;The IMF expects global growth to improve to 3.4 per cent in 2027.&nbsp;In April's forecast, the global fund has slashed its global GDP growth forecast to 3.1%, down from its previous 3.3% estimate.

<blockquote class="twitter-tweet">Updated IMF Growth Forecasts for 2026: 🇺🇸 US: 2.3% 🇩🇪 Germany: 0.7% 🇫🇷 France: 0.6% 🇬🇧 UK: 1.0% 🇨🇳 China: 4.6% 🇯🇵 Japan: 0.6% 🇮🇳 India: 6.4% 🇷🇺 Russia: 1.1% 🇧🇷 Brazil: 2.4% 🇸🇦 Saudi Arabia: 1.7% 🇳🇬 Nigeria: 4.1% Explore the full projections: <a href="https://t.co/EWThm8NLlj">https://t.co/EWThm8NLlj</a> <a href="https://t.co/0ypjx81oHn">pic.twitter.com/0ypjx81oHn</a>&mdash; IMF (@IMFNews) <a href="https://x.com/IMFNews/status/2074841125916135925?ref_src=twsrc%5Etfw">July 8, 2026</a></blockquote> <script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>

US and Israeli strikes targeting Iran since February 28 triggered retaliation from Tehran, which virtually blocked the Strait of Hormuz and pushed the Middle East into war. The disruption to traffic through the strategic waterway drove oil prices higher, adding pressure on economies around the world. Oil and gas shipments resumed after a temporary US-Iran agreement paused hostilities, but tensions have escalated after a recent exchange of fire between Washington and Tehran.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-says-us-may-reinstate-naval-blockade-attack-iran-s-oil-electric-and-water-infrastructure-1783522388324">Trump says US may reinstate naval blockade, attack Iran’s oil, electric and water infrastructure</a><h3>India's growth outlook revised</h3>The IMF also marginally lowered India's real GDP growth forecast for 2026 to 6.4 per cent, reducing it by 0.1 percentage point from its April estimate. It attributed the revision to a more challenging global environment shaped by geopolitical tensions and trade uncertainty.&nbsp;At the same time, the Fund raised India's growth forecast for 2027 to 6.7 per cent from its earlier projection of 6.5 per cent, reflecting confidence in the country's medium-term outlook.&nbsp;The IMF said India continues to be one of the fastest-growing major economies.&nbsp;"India remains among the fastest-growing major economies, with growth projected at 6.4 per cent, supported by strong momentum in private consumption and services activity," the report said.

The IMF lowered its 2026 global growth forecast to 3.0 per cent in its latest World Economic Outlook update, after reducing it from 3.3 per cent to 3.1 per cent in April due to the US-Iran war.

The International Monetary Fund (IMF) on Wednesday lowered its global growth forecast for 2026 for the second time this year, warning that renewed fighting in West Asia has increased uncertainty over the world economy. In its latest World Economic Outlook update, the IMF projected global economic growth at 3.0 per cent for 2026, down from the 3.1 per cent forecast it made in April. The updated forecast was prepared before the latest exchange of fire between the United States and Iran. This is the second time in 2026 that the IMF has lowered its global growth outlook. The Fund also expects the world economy to grow at a slower pace than in 2025. The IMF now expects global inflation to reach 4.7 per cent this year, higher than it had projected earlier. The IMF expects global growth to improve to 3.4 per cent in 2027. In April's forecast, the global fund has slashed its global GDP growth forecast to 3.1%, down from its previous 3.3% estimate.

The IMF lowered its 2026 global growth forecast to 3.0 per cent in its latest World Economic Outlook update, after reducing it from 3.3 per cent to 3.1 per cent in April due to the US-Iran war.

IMF cuts global growth forecast for second time in 2026 amid West Asia tensions; where does India stand?

President Donald Trump warned Wednesday that US forces would strike Iran "hard" in the coming night, after earlier declaring Washington's ceasefire with Iran over at a NATO summit in Ankara. "We're gonna hit 'em hard tonight," he said before holding talks with Ukraine's Volodymyr Zelensky, adding, "They violated the agreement..." Earlier, the US president declared the ceasefire with Iran "over" on Wednesday. Trump noted he would allow his negotiators, Steve Witkoff and Jared Kushner, to continue talks if they wished, after fighting flared amid tensions over attacks on ships in the vital Strait of Hormuz. "As far as I'm concerned, it's over," Trump said at a NATO summit in Turkey on Wednesday when asked if the truce was intact. "It's just a waste of time dealing with them," he added. "I'll let our wonderful negotiators keep talking if they want, but I don't see it. I don't like these people." Trump's announcement follows a massive strike on more than 80 targets in Iran, after the US accused the Islamic Republic of targeting three merchant ships near the Strait of Hormuz, a key global shipping route. While the US military described the operation as a response to Iranian aggression, Tehran has warned it will take all necessary measures to protect its national interests.&nbsp;Also Read:<a href="https://www.wionews.com/world/nato-allies-call-for-freedom-of-navigation-in-hormuz-reaffirm-ironclad-commitment-to-collective-defence-1783516894763"> Hormuz navigation, collective defence, support for Ukraine: Key takeaways from NATO's Ankara declaration</a>&nbsp;These statements put the fragile 14-point memorandum of understanding, signed by US President Trump at the Palace of Versailles on June 17 and Iranian President Masoud Pezeshkian, in jeopardy. The MoU was aimed at ending the active hostilities that began in late February, and was intended to reopen the Strait of Hormuz, restore freedom of navigation for commercial shipping, reduce military tensions in the Gulf, and lay the groundwork for broader diplomatic talks. Meanwhile, Iranian Parliament Speaker and top negotiator Mohammad Bagher Ghalibaf issued a fierce rhetorical pushback against Washington. In a statement published on X, Ghalibaf accused the United States of "major violations" regarding the Islamabad Memorandum of Understanding (MoU), a tenuous ceasefire agreement aimed at managing regional friction. In his post, Ghalibaf outlined five specific grievances, condemning what he termed "attacks on southern Iran," "persistent threats of further strikes," the reinstatement of crippling oil sanctions, and US interference with Iranian maritime operations in the Strait. He additionally tied the breakdown of the MoU to broader geopolitical dynamics, listing "continued Zionist aggression" against Lebanon as a primary breach.

Trump announced fresh strikes after the US carried out attacks on over 80 Iranian targets, following accusations that Iran had attacked merchant ships near the Strait of Hormuz.

President Donald Trump warned Wednesday that US forces would strike Iran "hard" in the coming night, after earlier declaring Washington's ceasefire with Iran over at a NATO summit in Ankara. "We're gonna hit 'em hard tonight," he said before holding talks with Ukraine's Volodymyr Zelensky, adding, "They violated the agreement..." Earlier, the US president declared the ceasefire with Iran "over" on Wednesday. Trump noted he would allow his negotiators, Steve Witkoff and Jared Kushner, to continue talks if they wished, after fighting flared amid tensions over attacks on ships in the vital Strait of Hormuz. "As far as I'm concerned, it's over," Trump said at a NATO summit in Turkey on Wednesday when asked if the truce was intact. "It's just a waste of time dealing with them," he added. "I'll let our wonderful negotiators keep talking if they want, but I don't see it. I don't like these people." Trump's announcement follows a massive strike on more than 80 targets in Iran, after the US accused the Islamic Republic of targeting three merchant ships near the Strait of Hormuz, a key global shipping route. While the US military described the operation as a response to Iranian aggression, Tehran has warned it will take all necessary measures to protect its national interests. Also Read: Hormuz navigation, collective defence, support for Ukraine: Key takeaways from NATO's Ankara declaration These statements put the fragile 14-point memorandum of understanding, signed by US President Trump at the Palace of Versailles on June 17 and Iranian President Masoud Pezeshkian, in jeopardy. The MoU was aimed at ending the active hostilities that began in late February, and was intended to reopen the Strait of Hormuz, restore freedom of navigation for commercial shipping, reduce military tensions in the Gulf, and lay the groundwork for broader diplomatic talks. Meanwhile, Iranian Parliament Speaker and top negotiator Mohammad Bagher Ghalibaf issued a fierce rhetorical pushback against Washington. In a statement published on X, Ghalibaf accused the United States of "major violations" regarding the Islamabad Memorandum of Understanding (MoU), a tenuous ceasefire agreement aimed at managing regional friction. In his post, Ghalibaf outlined five specific grievances, condemning what he termed "attacks on southern Iran," "persistent threats of further strikes," the reinstatement of crippling oil sanctions, and US interference with Iranian maritime operations in the Strait. He additionally tied the breakdown of the MoU to broader geopolitical dynamics, listing "continued Zionist aggression" against Lebanon as a primary breach.

Trump announced fresh strikes after the US carried out attacks on over 80 Iranian targets, following accusations that Iran had attacked merchant ships near the Strait of Hormuz.

'We'll hit them hard tonight': Trump vows fresh Iran strikes after declaring ceasefire 'over'

US President Donald Trump announced the ceasefire with Iran is officially "over" during his visit to Turkey. Speaking at the NATO summit in Ankara, Trump described the negotiations as a "waste of time," calling the negotiators “good people" while blasting Iranian leadership as “scum and sick people.” The diplomatic breakdown follows US military strikes on 80 targets, which were launched after Tehran targeted commercial vessels in the Strait of Hormuz.&nbsp;Watch video here:&nbsp;&nbsp;

<blockquote class="twitter-tweet" data-media-max-width="560">US President Donald Trump said he considers the ceasefire with Iran effectively &quot;over&quot; and dismissed further engagement, calling Iran&#39;s leadership &quot;sick people.&quot; While noting that Iranian negotiators &quot;want to negotiate&quot; and are &quot;good people,&quot; Trump said any talks would have to… <a href="https://t.co/rjrsrAPQhx">pic.twitter.com/rjrsrAPQhx</a>&mdash; WION (@WIONews) <a href="https://x.com/WIONews/status/2074784022589473005?ref_src=twsrc%5Etfw">July 8, 2026</a></blockquote> <script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>

&nbsp;The US leader accused Iran of repeatedly misrepresenting the June 17 ceasefire agreement. He claimed that despite agreeing to no nuclear weapons, Iranian officials joked to the media that the issue was never discussed. While Trump noted he would allow his negotiators, Steve Witkoff and Jared Kushner, to continue talks if they wished, he dismissed further engagement as a "waste of time," stating it is now up to Tehran to return to the negotiating table.&nbsp;Also read: <a href="https://www.wionews.com/world/following-80-us-air-strikes-iran-s-top-negotiator-ghalibaf-sends-a-blistering-message-to-washington-1783501607436">Following 80 US air strikes, Iran's top negotiator Ghalibaf sends a blistering message to Washington</a>&nbsp;During the summit, NATO chief Mark Rutte backed recent US military actions, telling Trump a prior night's strikes were “absolutely necessary,” and offered his full support. Despite Rutte’s backing—and Trump noting Rutte had called him "Daddy" at a previous NATO summit, Trump sharply criticised the alliance for refusing to assist against Iran, which he labelled the top state sponsor of terror. Trump expressed frustration with European allies, stating that the UK prime minister offered help only after the war ended, while Germany and France refused to assist entirely.&nbsp;Also read: <a href="https://www.wionews.com/world/watch-pezeshkian-ghalibaf-break-down-as-iran-bids-farewell-to-ayatollah-ali-khamenei-1783117672966">Watch: Pezeshkian, Ghalibaf break down as Iran bids farewell to Ayatollah Ali Khamenei</a>&nbsp;The escalation follows a US military announcement that it struck over 80 Iranian targets, including speedboats, in response to Iranian attacks on shipping vessels in the critical Strait of Hormuz.

US President Donald Trump declares the ceasefire agreement with Iran is officially "over," unleashing a scathing attack on Iranian leadership at the NATO summit following recent military escalations.

US President Donald Trump announced the ceasefire with Iran is officially "over" during his visit to Turkey. Speaking at the NATO summit in Ankara, Trump described the negotiations as a "waste of time," calling the negotiators “good people" while blasting Iranian leadership as “scum and sick people.” The diplomatic breakdown follows US military strikes on 80 targets, which were launched after Tehran targeted commercial vessels in the Strait of Hormuz. Watch video here:

US President Donald Trump declares the ceasefire agreement with Iran is officially "over," unleashing a scathing attack on Iranian leadership at the NATO summit following recent military escalations.

Trump says ceasefire with Iran is over, berates them as 's**m and sick people'

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IMF cuts global growth forecast for second time in 2026 amid West Asia tensions; where does India stand?

'Will hit them hard': Trump vows fresh Iran strikes, declares ceasefire 'over'

Trump says ceasefire with Iran is over, berates them as 's**m and sick people'