Eurozone Cuts Growth Forecast as Iran Conflict Fuels Inflation, Says EU

‘The conflict in the Middle East has triggered a major energy shock,’ said Commissioner for Economy and Productivity Valdis Dombrovskis.

A businesswoman is silhouetted as she makes her way under the Arche de la Defense in Paris on Nov. 20, 2012. Christian Hartmann/Reuters

The European Union has said there will be a slowdown in growth as a result of the “energy shock” triggered by the Iran conflict, according to the latest forecast.

In its May 21 executive summary to its spring forecast, the European Commission said that before the start of the Iran war, the world’s economy was gaining momentum, with the EU’s economy “likewise strengthening while inflationary pressures were further abating.”