Anonymous7 days ago
ECB President Christine Lagarde has warned that the Iran conflict's energy shock will have a "material impact" on eurozone inflation, with the central bank modeling scenarios ranging from 2.6% to 4.4% headline inflation in 2026 while GDP growth sinks to 0.9%. The crisis—driven by Strait of Hormuz disruptions and strikes on Gulf energy infrastructure—has exposed Europe's continued dependence on imported fossil fuels and forced the ECB into a policy holding pattern, caught between the need to fight inflation and the risk of strangling an already fragile economy.