The war involving Iran is weakening wages and working conditions across the globe, according to a new report by the International Labour Organization. The conflict is expected to cost millions of jobs and reduce earnings through 2026 and 2027, with migrant workers who rely on sending money home among the most vulnerable.

Rising energy prices, transport disruptions, strained supply chains, declining tourism, and cuts to migrant labor are putting pressure on economies worldwide. The report forecasts income declines of 1.1 percent this year and 3 percent in 2027, with the Middle East, Gulf states, and the Asia-Pacific region facing the most severe impact.

The organization’s chief economist described the war as a slow-moving and potentially long-lasting shock that could gradually reshape global labor markets. Meanwhile, mediators in Pakistan have delivered Iran’s latest proposals for ending the conflict to the United States, as diplomatic efforts continue amid warnings that time is running short to reach a resolution.