The head of the International Monetary Fund (IMF) has warned that conflict in in the Middle East is a "new cloud darkening" over the global economy.
The escalating conflict has already pushed up oil prices.
Kristalina Georgieva, the Head of the IMF, says they're closely monitoring the situation.
It comes as the UK's economy is already struggling, recording growth of just 0.2% in August and projecting the lowest growth of G7 countries in 2024.
Global growth was also cut this week with recovery from the pandemic and war in Ukraine "limping along".
"Very clearly this is a new cloud on what is not the sunniest horizon for the world economy. A new cloud darkening this horizon that is of course not needed," Ms Georgieva said at a press conference at the IMF annual meetings in Morocco.
Market shocks the 'new normal'
Ms Georgieva also warned that more market turmoil could be on the way if interest rates remain higher for longer.
She also warned that shocks to the market are becoming the "new normal" as governments run out of fiscal firepower to fight crises.
She added that officials at the fund had now been forced to “think the unthinkable” in terms of preparing for future shocks and its role as the lender of last resort.
Ms Georgieva said: "We are experiencing severe shocks that are now becoming the new normal for a world that is weakened by weak growth and economic fragmentation.
"Inflation is down but still above target in many countries. So interest rates will have to remain higher for longer, throwing more cold water on already anaemic growth."