EU warns long war risks ‘stagflationary shock’ to world economy
3/9/2026 9:36:36 PM
A long war in the Middle East could unleash a “substantial stagflationary shock on the global and European economy”, EU official Valdis Dombrovskis says.
“In a more benign scenario where the conflict is contained within a couple of weeks, one can expect that it would not have major effect on the global and European economy,” the EU economy commissioner told reporters.
But he said if it becomes “more protracted” with continued maritime disruption and attacks on Gulf energy infrastructure, it could result in a “stagflationary shock” with higher energy prices.
“In a more benign scenario where the conflict is contained within a couple of weeks, one can expect that it would not have major effect on the global and European economy,” the EU economy commissioner told reporters.
But he said if it becomes “more protracted” with continued maritime disruption and attacks on Gulf energy infrastructure, it could result in a “stagflationary shock” with higher energy prices.