President Donald Trump’s war in Iran is predicted to cause a steep rise in inflation in the U.S. A devastating forecast from the Organisation for Economic Co-operation and Development (OECD) says that the Middle East conflict could see U.S. inflation rise to as much as 4.2 percent this year. The multibillion-dollar war could also slow U.S. economic growth to 2 percent this year, before sliding down further to 1.7 percent in 2027. The estimates are devastating for Trump, who made tackling high inflation and rising prices one of his main 2024 vows. Instead, the closure of the Strait of Hormuz during the Iran war has sparked a worldwide fuel crisis, sending gas prices soaring in the U.S., with inflation predicted to follow suit. “The breadth and duration of the conflict are very uncertain, but a prolonged period of higher energy prices will add markedly to business costs and raise consumer price inflation, with adverse consequences for growth,” the Paris-based OECD said. The organization also warned that the war in Iran will affect global GDP growth, which is now projected to ease from 3.3 percent in 2025 to 2.9 percent in 2026 before marginally increasing to 3 percent next year.
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