Europe's Economic Recovery Slows as Iran Conflict Extends Inflation and Growth Lag

The region’s post‑pandemic rebound is losing momentum. Analysts link the slowdown to the ongoing war in Iran. The conflict is keeping energy and commodity markets volatile. Higher prices are expected to persist across the eurozone. Economic growth forecasts have been revised downward. Policymakers warn that a quick shock is unlikely. Instead, a longer period of modest expansion is anticipated. Observers say the trend could reshape Europe’s recovery path.