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Luftansa, the German airline says it's cutting 20,000 flights.

And the reason?

The price of jet fuel has doubled because of the Iran War,

which, despite two months of hostilities and a dozen declarations

of victory, is still going on. Those cancellations are a straw in the wind, and the most

recent assessment from the International Monetary Fund was pretty gloomy. So how bad can things

get for the world economy? And even if the war ends soon, what lasting damage

has already been done? Step into the briefing room and together we'll find out.

To discuss this, I'm joined on the line by the Nobel Memorial Prize-winning American economist

Joseph Stiglitz, who's a professor at Columbia University,

and in the studio, the author and economist Duncan Weldon, and Deanna Scheuilver, economist and founder

of Enodo Economics.

Duncan Weldon, we talked about this on this program when the war had just begun.

Now, can you bring us up to date on what the global economy is looking like now, almost

two months

since the start of this war?

And let's begin with oil.

Well, the strait of humurs, which we spoke a lot about when this war first started,

the big thing worrying for the global economy was the strait was closed.

Here we are almost two months later, and the straight is still effectively closed.

And that's the really big worry for the global economy, because in normal times, 20% of the world's crude and refined products, a lot of its liquefied natural gas, all sorts of fertilizers, all sorts of other products flow through that straight, the straight is closed.

...