Iran war

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Dramatic split-image depicting Middle East oil conflict impacting Spain's economy with declining IMF growth forecasts and housing policy recommendations.
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IMF cuts Spain's growth forecast to 2.1% due to Iran war

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The International Monetary Fund has cut its growth forecast for Spain's economy by two tenths, to 2.1% in 2026 and 1.8% in 2027, due to the Middle East conflict. The organization attributes the adjustment mainly to rising oil and gas prices. It recommends eliminating rent controls and taking stronger action on housing.

The South Korean won rose further against the U.S. dollar on Wednesday as U.S. President Donald Trump signaled a possible swift end to the ongoing Middle East conflict. The won opened at 1,493 per dollar, up 2.2 won from the previous session. This follows a surge to 1,495.2 won per dollar on Tuesday, recovering from a 17-year low of 1,517.3 won.

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Due to the Iran war's impact on energy prices, the EU Commission has urged member states to lower gas storage filling targets from 90 to 80 percent. EU Commissioner Dan Jørgensen wrote in a letter that this could reduce gas demand and ease price pressures. The EU is better prepared for crises than in 2022.

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