Euro zone growth forecast cut because of war impact

Energy prices surged after Iran retaliated to US-Israeli strikes with attacks on neighbouring countries and effectively closed the Strait of Hormuz. (Photo: AFP)

BRUSSELS - The euro zone economy will expand less than expected this year, the European Commission said on Thursday, as the Middle East war and subsequent energy shock take their toll.

The European Commission said the single currency area’s economy is expected to grow 0.9% in 2026, down from a previous prediction of 1.2%.