The International Monetary Fund has warned the Middle East is sliding into recession, with the Iran conflict causing an economic slump across the region and pushing oil prices higher. Corporate outlooks have weakened in response to the surge in energy costs.

The IMF also cut its Romania forecast, projecting a 0.5% contraction in 2026 with inflation running at 8.2%. In Australia, the downturn is reflected in the property market, where auction clearance rates have dropped under 50% for two weeks running and house prices are falling across the country.