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

The IMF also cut its Romania forecast, 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 now fallen below 50% for two weeks running and house prices are softening across the country.