ECB poll shows euro zone firms fear Iran war inflation surge
Updated
Updated · Reuters · May 4
ECB poll shows euro zone firms fear Iran war inflation surge
8 articles · Updated · Reuters · May 4
The survey of 67 non-financial companies found air travel, logistics, chemicals, plastics and packaging firms had already raised prices, often by double-digit percentages, after oil jumped.
The ECB said hedging had so far softened broader pass-through, but a months-long conflict blocking the Strait of Hormuz could trigger shortages of fuel, hydrogen and helium.
The findings come after the ECB held rates last week while debating a hike and signalling borrowing costs may start rising in June to tackle inflation.
With supply chains fractured, can central bank rate hikes fight this new inflation or will they just guarantee a deep recession?
Beyond oil, is a looming helium shortage about to cripple the world's semiconductor and AI industries?
The Iran War outbreak in early 2026 led to the closure of the Strait of Hormuz, cutting global oil flow by one-third and causing Brent crude prices to surge to $83 per barrel. This energy shock triggered broad inflation across the Eurozone, with natural gas prices rising sharply and supply chains disrupted by halted exports and refinery shutdowns. Businesses responded by raising prices amid growing consumer hardship and tightening credit conditions. The European Central Bank faces a tough choice between raising interest rates to control persistent inflation and avoiding a deeper economic slowdown, as the risk of stagflation looms if the conflict and supply disruptions continue.