OECD finds global economy on brink of inflation spike due to US-Israeli attacks on Iran with Australia not immune

Local economists are slashing growth prospects for this year and the next due to higher interest rates

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The world economy is on the brink of a major inflationary spike as soaring fuel prices threaten growth in European and Asian nations, the OECD has warned, and local economists are slashing Australia’s growth prospects for this year and the next amid the ongoing US-Israel attack on Iran.

The Organisation for Economic Cooperation and Development’s latest interim outlook said the US-Israel war on Iran will “test the resilience of the global economy”, and warned of the “significant downside risk” to their forecasts should the oil supply disruptions prove more persistent and push energy prices even higher.