International Monetary Fund Managing Director Kristalina Georgieva warned that inflation is already picking up and the global economy could face a 'much worse outcome' if the war in the Middle East continues into 2027, with particular concern about prolonged disruption to energy supplies.
U.S. intelligence assessments indicate Iran still needs up to a year to build a nuclear weapon, unchanged since last summer's U.S.-Israeli attack, while escalating tit-for-tat incidents in the Strait of Hormuz threaten a fragile U.S.-Iran ceasefire.
Workers and activists held May Day demonstrations across Europe, Asia, and other regions on May 1, 2026, with traditional labor protests over wages and working conditions increasingly incorporating anti-war messaging and opposition to rising energy costs linked to conflict involving Iran. Some demonstrations escalated into clashes.
Defense Secretary Pete Hegseth told a congressional hearing on April 29, 2026, that the Iran war had cost an estimated $25 billion over two months; mostly munitions, operations and equipment replacement, without offering an end date. The USS Gerald R. Ford aircraft carrier and its strike group are expected to depart the Middle East in the coming days after nearly a year of deployment.
