Energy shock from Iran war to weigh on Europe's growth, boost inflation
The Euro currency symbol is seen prior to a press conference after an ECB's governing council meeting in Frankfurt, Germany, Dec. 18, 2025. (AP Photo/Michael Probst, File)
FRANKFURT, Germany (AP) — The European Union's executive commission cut its growth outlook and predicted higher inflation due to sharply higher energy prices from the war in Iran — but said the economy will avoid an outright recession.
“As a net energy importer, the EU’s economy is highly susceptible to the energy shock caused by the conflict in the Middle East,” the commission said in a statement Thursday. The rising cost of fuel "means higher household bills and surging business costs that reduce profits for many industries.”
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