The Iran war brought global economic momentum to a halt, the International Monetary Fund said Tuesday, providing new projections for slower growth and higher inflation.

Why it matters: It is the latest major economic institution to warn about stagflation-like global economic fallout from the war. The conflict upended what was shaping up to be a solid year for the global economy.

* The IMF joins the Organisation for Economic Co-operation and Development, which last month scrapped a planned upgrade to its own forecasts in the wake of the Iran war.

What they're saying: "Prior to the war, we were poised to upgrade our global growth forecast," the IMF says in its latest World Economic Outlook, pointing to a tech investment boom, easing trade tensions and buoyant financial markets. "War in the Middle East will overwhelm these underlying forces."

* War in the Middle East has "halted" economic momentum, IMF chief economist Pierre-Olivier Gourinchas wrote in a blog post.

* "The closing of the Strait of Hormuz and serious damage to critical facilities in a region central to global hydrocarbon supply raise the prospect of a major energy crisis should hostilities continue," Gourinchas said.