EU Warns of Stagflationary Shock Amid Rising Oil Prices

EU Commissioner Valdis Dombrovskis has cautioned that an extended conflict involving Iran could lead to a 'stagflationary shock' as oil prices have surpassed $100 per barrel. According to NS3.AI, Walter Bloomberg noted in an X post that the European Union is preparing to reduce its growth forecast while increasing its inflation outlook. Additionally, the EU has expressed concerns that supply issues in the Strait of Hormuz could prolong inventory and price pressures until 2027.