World trade growth set to slow to 1.9% this year, Iran war may weigh more, says WTO - Reuters

The World Trade Organization projects global trade growth will decelerate to 1.9% this year, a slowdown the organization attributes partly to geopolitical tensions, particularly a potential Iran conflict. The forecast represents a significant contraction from historical averages, reflecting broader economic headwinds including inflation pressures and supply chain vulnerabilities that persist from recent global disruptions. A military escalation involving Iran could further disrupt energy markets and shipping routes critical to international commerce, amplifying the downside risk to trade flows. The WTO's warning underscores how geopolitical instability directly threatens economic growth across trading nations dependent on stable global markets. Slower trade typically translates to reduced investment, job creation, and consumer purchasing power in export-dependent economies.