UNDP warns war could wipe up to $194bn from regional economy

The United Nations Development Programme has warned of severe economic fallout from the US-Israeli war on Iran.

In a new report, it said a localised conflict risks becoming a “systemic regional shock”.

Regional GDP could shrink by between 3.7 and 6 percent, amounting to losses of up to $194bn, driven by disruption to trade, energy markets and shipping.

Traffic through the Strait of Hormuz has dropped by more than 70 percent, with oil prices rising from about $72 to nearly $120 a barrel.

The report also warned that up to four million more people could fall into poverty, while between 1.6 and 3.6 million jobs are at risk, particularly among low-skilled workers.