The influential financial body said the international outlook had \u201cabruptly darkened\u201d as a result of the war, which threatens to throw the global economy \u201coff course\u201d and could cause an energy crisis on an unprecedented scale.<\/a> As oil and gas prices continue to rise, a worldwide recession could be a \u201cclose call\u201d in a severe scenario in which there is further turmoil, the body warned.<\/p>\n Of the major economies, the UK faces the biggest hit to growth, with forecasts slashed for the next two years. In a further blow to Sir Keir Starmer, the IMF<\/a> warns that inflation and unemployment will also rise. <\/p>\n Hopes for an easing of tensions in the Middle East were raised on Tuesday after President Trump suggested that negotiations with Iran over a ceasefire could restart \u201cover the next two days\u201d. There were also reports that Tehran is considering a pause on its shipments through the Strait of Hormuz<\/a> in a bid to get talks back on track. <\/p>\n But the US president also issued more criticism towards the UK, reiterating his calls for Britain to expand oil and gas drilling<\/a> in the North Sea<\/a> to deal with the growing energy crisis.<\/p>\n The chancellor, Rachel Reeves, <\/a>criticised Trump\u2019s \u201cfolly\u201d in starting a war without a clear exit strategy, saying she was \u201cvery frustrated and angry\u201d with America\u2019s actions in the Middle East, before she heads to Washington for the IMF\u2019s spring meeting, where she will urge other countries to work together to respond to the crisis. <\/p>\n In its latest economic outlook, the IMF predicted that, in the wake of the war, UK economic growth will be weaker than previously forecast, with GDP set to grow by 0.8 per cent this year and 1.3 per cent next year. Both are below its prediction, as recently as January, of 1.3 per cent this year and 1.5 per cent in 2027. The UK economy grew last year by 1.3 per cent.<\/p>\n The IMF also predicts that UK inflation will rise, driven by higher energy prices, more expensive fuel and increased food costs, to an average of 3.2 per cent this year and 2.4 per cent next year. It had previously forecast averages of 2.5 per cent and 2 per cent. Petrol prices have already risen 19 per cent since the conflict started, while the cost of diesel is up by more than a third.<\/p>\n In another blow to the UK, the IMF predicts unemployment will rise to 5.6 per cent this year, up from last year\u2019s 4.9 per cent.<\/p>\n In a foreword to the latest report, IMF economic counsellor Pierre-Olivier Gourinchas said that the international outlook had \u201cabruptly darkened\u201d, knocking the global economy off a steady trajectory of growth.<\/p>\n![\"Smoke](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/04\/2267772031.jpg\")
Smoke rises from the area of Kuwait international airport after a reported drone strike hit a fuel depot last month. Gulf countries called for Iran to immediately halt its strikes on their territory (AFP\/Getty)<\/p>\n![\"Donald](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/04\/477322528.jpg\")
Donald Trump\u2019s war on Iran has been blamed for the economic turmoil (AFP\/Getty)<\/p>\n