The World Bank on Tuesday cut its global economic growth forecast to 2.5% for the current year, citing concerns about the ongoing conflict in Ukraine and its potential to spread disruption across financial markets worldwide.

The international financial institution warned that growth could fall as low as 1.3% if the war's economic fallout extends more broadly to global markets, signaling heightened anxiety about the conflict's economic ramifications beyond the immediate region.

Separately, diplomatic efforts continued as a Russian diplomat held discussions about the Ukraine war with ambassadors from France, Germany, and Britain, though details of the conversations were not immediately disclosed.

Meanwhile, regional tensions flared elsewhere as Turkey issued threats of a strong response to a new defense pact between France and Cyprus. The Turkish government expressed opposition to the agreement, which it views as affecting regional security dynamics in the Eastern Mediterranean.

The World Bank's revised projections reflect growing concerns among international institutions about the war's capacity to disrupt global supply chains, energy markets, and financial stability. The significantly lower potential growth rate of 1.3% would represent a substantial contraction in global economic activity.