Economic shock from Iran war risks driving up global debt levels, says IMF

Conflict is pushing up price of energy and food, fuelling higher borrowing costs and hitting growth, report says

• Iran war escalation could trigger global recession, IMF warns

• Business live – latest updates

The Iran war risks triggering a rise in global debt levels, forcing governments to choose between cushioning a cost of living shock and maintaining sound public finances, the International Monetary Fund has warned.

Against a volatile backdrop of the Middle East conflict, the Washington-based fund said the war could add to the already strained position of government finances throughout the world.