Euro-Zone Growth Slows as Iran War Brings Stagflation Closer.

The article focuses on the unexpected economic slowdown in the euro area at the start of 2026, driven by rising energy costs linked to the Iran war, which threatens stagflation in the region. First-quarter GDP growth was 0.1%, below expectations, with Spain leading growth and France stagnating, while inflation surged to 3% in April, the fastest since September 2023. European companies such as German chemicals firm BASF SE and lubricants maker Fuchs SE have raised prices to offset higher input costs. The European Central Bank (ECB) is expected to maintain interest rates for now but may tighten monetary policy later in the year despite risks to growth. Several euro-area countries, including France, Italy, and Germany, have revised down their growth forecasts amid ongoing economic uncertainties. [Extracted from the article]