World Bank Cuts 2026 Growth Outlook as Iran War Knocks Out 20% of Global LNG Supply
Updated
Updated · The Washington Post · Sep 18
World Bank Cuts 2026 Growth Outlook as Iran War Knocks Out 20% of Global LNG Supply
3 articles · Updated · The Washington Post · Sep 18
Summary
The World Bank lowered its 2026 global growth forecast to the weakest level since the pandemic, with developing economies taking the hardest hit from the Iran war’s widening commodity shock.
About 20% of global LNG supply was removed by the Strait of Hormuz closure and the March strike on Qatar’s Ras Laffan complex, where damage also cut expected exports of condensate by 24% and helium by 14%.
That disruption has spread well beyond oil: the IMF put 2026 global inflation at 4.7%, urea fertilizer rose to $700 a metric ton from about $450, and aluminum hit a four-year high.
Asian buyers have already shifted course, with South Korea’s coal generation up nearly 40% year over year in April, Japan’s up 11%, and Thailand moving toward more renewables and first-time nuclear adoption.
China has been better insulated with roughly 1.4 billion barrels in crude reserves, reinforcing concerns that countries may increasingly look to Beijing rather than Washington for energy security.