#Eu

EU WARNS IRAN CONFLICT COULD CAUSE STAGFLATION SHOCK

The European Union plans to lower its growth outlook and increase inflation estimates due to a “stagflationary shock” from the Iran conflict, according to Commissioner Valdis Dombrovskis.

He highlighted that oil prices above $100 and supply disruptions through the Strait of Hormuz are leading to slower growth, rising inflation, and reduced policy options.

The EU also warned that a prolonged conflict could intensify energy shortages and keep pressure on inventories and prices through 2027.