Oil and gas prices soar, who pays the bill for Europe's industrial costs

CryptoWorld News reports that the European Commission warns that the Iran war will suppress this year’s economic growth in the eurozone and push inflation higher. It expects economic growth of only 0.9%, with inflation rising to 3%. The conflict between the United States, Israel, and Iran has caused oil and gas prices to soar, disrupting global supply chains for other commodities, driving up costs for European industry and households, and forcing governments to invest funds to protect their domestic economies—making it even more difficult to restore economic growth and improve competitiveness.

EU Trade Commissioner Dombrovskis said that the conflict in the Middle East has triggered a major energy shock, testing Europe’s ability to respond to turbulent geopolitical and trade conditions. He warned that, in the short term, there is no clear solution for resolving the conflict in the Middle East. Brussels has simulated more unfavorable energy price scenarios, and the worst case could cut the economic growth forecast in half and push inflation even higher.