IMF cuts Middle East growth forecast amid prolonged Strait of Hormuz closure

The IMF has cut its 2026 growth forecast for the Middle East, projecting the region to contract by 0.3% compared with its earlier forecast of 1.9% growth. It blamed the prolonged closure of Strait of Hormuz, adding that growth could rebound if the waterway reopens. The IMF noted that Oman in the only Gulf expected to maintain positive growth.