Iran War

China GDP grew 4.5% in Q1 2026, weakest since 1990 outside COVID years. US-China trade war, Iran war disruptions, and domestic property crisis creating multiple headwinds. Beijing facing pressure to boost domestic consumption as 5% growth target at risk.

Wall Street has closed its fifth consecutive losing week, the longest sustained decline since the Iran war began, as the Dow, S&P 500, and Nasdaq all hit year lows amid mounting inflation concerns.

Goldman Sachs economists warn the Iran war has elevated the risk of a U.S. recession within 12 months, as higher oil prices push inflation to 3.1% while growth slows simultaneously.