The OECD warns that continued conflict involving Iran—particularly tensions with the United States—creates significant downside risks for the global economy. In its latest assessment, the organization says the conflict in the Middle East has already weighed on economic growth and could worsen if de-escalation does not occur. The OECD highlights the possibility of a sharper global downturn, including recession risk, alongside upward pressure on prices. It links these concerns to broader economic effects of prolonged conflict, including disruptions to trade and financial conditions that can spill over beyond the region. The assessment frames the situation as one in which the trajectory of global growth and inflation depends on whether tensions ease. Overall, the OECD presents its outlook as a warning about what could happen if the conflict persists, emphasizing that the economic stakes are high and that outcomes could include both weaker growth and stronger inflation.