Iran war squeezes Europe’s economy as growth slumps, prices surge

AI Summary

Europe's economy is significantly slowing due to the impacts of the war in Iran, which has driven up energy costs and inflation. Business activity in the euro zone has contracted sharply, raising fears of recession and intensified cost-of-living pressures across households.

Europe’s economy is slowing sharply as the Iran war drives up energy costs, deepening pressure on households and challenging policy makers. Fresh data for May showed euro zone business activity contracted at its fastest pace in more than two years while inflation pressures intensified, raising fears of a prolonged cost-of-living crunch and possible recession.