The war in the Middle East and the closure of the Strait of Hormuz will push the Middle East and Central Asia region into contraction this year, with several Gulf oil producers facing double-digit declines. In its October 2026 World Economic Outlook, the IMF projected growth in the Middle East and Central Asia at minus.
US President Donald Trump says Washington will decide on Iran the “easy way or the hard way”, claiming Tehran has been “decimated” and that the conflict could end quickly.
At least four Palestinians were killed and 12 injured in a series of Israeli attacks across Gaza, with incidents reported in Gaza City, Khan Younis and al-Mawasi.
Iran's Supreme Leader Mojtaba Khamenei was reportedly pulled from the rubble of a Tehran hospital after US-Israel strikes, according to an Iranian Assembly of Experts member.
US President Donald Trump says Iran wants the Strait of Hormuz reopened immediately amid financial pressure, as Tehran awaits a formal US response to its proposal.
Domestic equity benchmarks opened sharply lower on Wednesday weighed down by a surge in crude oil prices after the US and Iran exchanged strikes overnight, escalating tensions in the Middle East.
The contradictions underpinning the Mecca Agreement involving Pakistan, Saudi Arabia and Turkey could hardly be more glaring. With no shared values, common interests or even a unified threat perception, and no common adversary to bind them, the trilateral pact faces the fundamental question of what will ultimately hold it together. The Iran war is changing.
The growing prominence of the India-Israel-United Arab Emirates-United States (I2U2) grouping, together with the India-Middle East-Europe Economic Corridor (IMEC), underscores the growing convergence of economic integration and regional security. It argued that as Washington seeks dependable partners to help preserve regional stability while reducing its military involvement, India has positioned itself as a trusted actor.
