The International Monetary Fund has warned the Middle East is heading for recession, with the Iran conflict causing an economic slump across the region and sending energy costs up. Corporate outlooks have weakened in response to the surge in energy costs.

The IMF also revised Romania's outlook downward, projecting a 0.5% contraction in 2026 with inflation sitting at 8.2%. In Australia, the downturn is reflected in the property market, where auction clearance rates have now fallen below 50% for two weeks running and house prices are falling across the country.