OECD cuts growth forecast amid Iran conflict
The Organization for Economic Cooperation and Development warned that the ongoing Iran war is stymieing global economic growth prospects. The group's updated outlook cited disruptions to oil supplies through the Strait of Hormuz, rising energy prices, and trade uncertainty as key drags on the world economy. The EU separately warned that the conflict is causing a stagflation shock, with slow growth and high inflation hitting both Europe and developing nations.
US jobs market shows surprising strength
The U.S. economy added 172,000 jobs in May, smashing analyst forecasts, according to government data released Friday. The unemployment rate held steady at 4.3%. The strong labor market report came despite rising inflation and economic uncertainty linked to the Iran war. However, consumer anger remains high, with analysts pointing to factors beyond just prices driving public frustration.
Japan's Nikkei hits record high; UK housing weakens
Japan's Nikkei 225 index topped 65,000 for the first time, driven by hopes that the Strait of Hormuz may reopen to normal shipping traffic. In the UK, house prices fell for the third consecutive month in May, with a typical home now costing 298,806 pounds, according to Halifax. Analysts blamed Iran war uncertainty for the decline in buyer confidence.