The International Monetary Fund has warned the Middle East is sliding into recession, with the Iran conflict driving an economic slump across the region and sending energy costs up. Corporate outlooks have taken a hit in response to the spike in oil prices.

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 showing up 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.