Bloomberg warns that if fighting between the United States and Iran continues for another month, European countries could be hit by a new economic crisis. The agency, citing analysts, notes that the coming four weeks will be decisive: during this period it will become clear whether the EU economy is heading into a full-blown crisis or facing only a serious setback on its path to recovery. A longer military campaign, they argue, threatens to derail plans to restart growth in the eurozone.

ING chief economist Karsten Brzeski believes that the European Union’s dependence on oil and gas supplies makes it, in his words, the most vulnerable major economy to the consequences of a war with Iran. Bloomberg also relays the assessment that a short conflict, accompanied by only a brief spike in energy prices, would likely limit the damage. However, a drawn-out war that keeps oil and gas prices elevated could, according to the agency, force governments to increase spending.

The article recalls that on 28 February the United States and Israel launched a military operation against Iran. Washington justified the strikes by pointing to missile and nuclear threats it claims are coming from Tehran. In response, the Islamic Revolutionary Guard Corps announced a large-scale military operation.