Europe Bounces Back from Iran War: Six-Month Economic Update

As the Iran war reaches its six-month mark, Europe's economic outlook appears to be more resilient than initially anticipated. According to recent data, growth in the eurozone has held up, and inflation hasn't risen as sharply as some had feared.

The crisis has been less severe compared to the Ukraine invasion four years ago, when energy contributed significantly to eurozone inflation. By July 2022, energy accounted for a whopping four-percentage points of eurozone inflation.

However, today's numbers show that energy is only adding less than a quarter of that, approximately one percentage point, to current inflation rates in the eurozone and Britain.