ECB Warns Eurozone Economy at Risk from US-Iran Conflict Impact

The European Central Bank (ECB) has reported that household spending in the eurozone decreased significantly during the initial weeks of the US war on Iran. This decline was largely due to a weakening consumer confidence, which remains below pre-war levels. According to recent data, annual nominal consumption growth slowed down to approximately 2.5% in April from a range of 3-4% since mid-2024.

The ECB warned that renewed escalation in the conflict could further dampen consumption, indicating a potential long-term impact on the eurozone economy. The warning comes as consumer confidence continues to be affected by the ongoing war, with many households adjusting their spending habits in response to the uncertainty and instability caused by the conflict.