Fitch Ratings cuts global economic outlook amid US‑Israel‑Iran conflict

Fitch Ratings lowered its global sector outlook from "neutral" to "deteriorating", warning that the ongoing US‑Israel‑Iran war will suppress growth, push up inflation and bond yields, and keep geopolitical risk high. The agency said the conflict could weaken economic activity, raise energy prices and increase pressure on public finances.

Fitch also revised the outlook for five regional sectors to a worse stance, with the sole exception of China, which was upgraded to "neutral" thanks to strong export performance and resilient energy supplies. The report highlighted AI‑driven export strength in the Asia‑Pacific but warned that heavy energy dependence on the Strait of Hormuz leaves the region vulnerable. Gulf Cooperation Council members were noted for solid financial positions, while rising energy costs were expected to strain advanced economies.