Firms see inflation risks from prolonged Iran conflict
An ECB survey shows large firms expect a new inflation surge if the Iran conflict disrupts fuel supplies. Hedging may delay the impact on broader prices.
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The European Central Bank (ECB) found euro zone firms expect a new inflation surge if the conflict in the Middle East lasts months, with disruptions to the Strait of Hormuz affecting fuel and industrial supplies. This risk mirrors the price spikes following the invasion of Ukraine by Russia in 2022. Investors face potential double-digit price hikes across logistics and chemicals as energy hedging protections eventually expire.
