Trump Questions Housing Bill as He Prioritizes SAVE America Act 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
China Manufacturing PMI Edges Higher in June as Exports and AI Investment Boost Growth 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
Dollar Slips Ahead of Key U.S. Jobs Data as Fed Rate Outlook, ECB, and Iran Talks Shape Forex Markets 
Despite its best efforts, Iran won’t be able to toll the Strait of Hormuz. Here’s why 
Trump Suspends Some Morocco Fertilizer Tariffs to Ease U.S. Supply Shortage 
Iran Skips U.S. Technical Talks Over Unmet MoU Conditions and Frozen Funds Dispute 
Trump Signs Memorandum Backing Americans’ Right to Repair Their Own Vehicles 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Asian Stocks End Strong Quarter as Dollar Surges, Yen Hits 40-Year Low Ahead of US Jobs Data 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
Trump Announces September Overhaul of Washington’s East Potomac Golf Links 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Israeli Airstrike Kills Three in Central Gaza Despite Ceasefire 
The ongoing Middle East war is sending shockwaves through the global economy, and even a fragile ceasefire brokered by U.S. President Donald Trump may not be enough to prevent lasting damage, World Bank President Ajay Banga warned in a recent interview.
Banga cautioned that global growth could decline by 0.3 to 0.4 percentage points under an optimistic scenario where the conflict ends quickly — and by as much as a full percentage point if fighting continues. Inflation risks are equally alarming, with projections rising by 200 to 300 basis points in the near term, potentially surging to nearly a full percentage point higher in a prolonged conflict scenario.
The World Bank now forecasts growth in emerging markets and developing economies at just 3.65% for 2026, down from an earlier estimate of 4%, with a worst-case projection of only 2.6%. Inflation in those regions could reach 6.7% if the war escalates further. Oil prices have already climbed 50%, while supplies of gas, fertilizers, helium, and other essential commodities face serious disruptions alongside setbacks in tourism and air travel.
A key concern is whether negotiations can lead to a reopening of the Strait of Hormuz, a critical global energy chokepoint. The announced two-week ceasefire remains fragile, with ongoing strikes between Israel and Iran adding to uncertainty ahead of U.S.-Iran talks.
Developing nations — already burdened by high debt and elevated interest rates — are especially vulnerable. The World Bank is actively working with affected countries to access crisis response funds, while also advising against costly energy subsidies that could worsen long-term fiscal health.
The crisis underscores an urgent need for energy diversification. The World Bank is encouraging investment in nuclear, hydropower, geothermal, wind, and solar energy. Nigeria's Dangote Group refinery investment and Mozambique's expanding energy infrastructure have been highlighted as strong models for achieving regional energy self-sufficiency.
