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EU warns long Mideast war risks 'inflationary shock' to world economy

Middle East News

09-03-2026 | 10:10

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EU warns long Mideast war risks 'inflationary shock' to world economy

A long war in the Middle East could unleash a "substantial inflationary shock on the global and European economy", top EU official Valdis Dombrovskis said Monday.

"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 became "more protracted" with continued maritime disruption and attacks on Gulf energy infrastructure, it could result in an "inflationary shock" with higher energy prices.

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