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World Bank Cuts 2026 Growth to 2.5% Over War

6/12/2026

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Story summary
  • World Bank cut its 2026 growth forecast to 2.5% because the U.S.–Israeli war on Iran raised energy prices and inflation.
  • The war shut the Strait of Hormuz, cutting 30% of fertilizer and 20% of oil flow, raising diesel nearly 50%.
  • World Bank pledged up to $100 billion for nations while Indermit Gill warned 2020s could become a lost decade because President Donald Trump and Prime Minister Benjamin Netanyahu are hindering peace.