Iran Conflict Drives Inflation Surge Across Eurozone

(MENAFN- Trend News Agency) BAKU, Azerbaijan, March 31. The conflict in Iran, coupled with disruptions to oil shipments through the Strait of Hormuz and the resulting global energy shock, is accelerating consumer price growth across the Eurozone, Trend reports via Euronews TV channel, citing Eurostat.

Inflation in the single currency area has reached its highest pace since October 2022. Last month, energy prices had helped keep Eurozone inflation low, with annual energy costs falling by 3.1% and overall inflation at 1.9%, close to the European Central Bank's (ECB) 2% target. However, the outbreak of conflict in Iran has significantly driven up consumer prices.

Eurostat's preliminary report shows that annual inflation in the Eurozone rose to 2.5% in March, with the energy shock triggering the fastest monthly inflation increase since 2022.

In 2015, an agreement was reached between Iran and the P5+1 group on a Joint Comprehensive Plan of Action regarding Iran's nuclear program, and the UN Security Council adopted Resolution 2231, which led to the repeal of the previous six resolutions and the lifting of widespread sanctions against Iran related to its nuclear program.

In 2018, the U.S. withdrew from the plan and imposed sanctions on Iran. Iran's gradual lifting of the restrictions provided for in the plan was not unanimously accepted by other countries. Consequently, on September 28, 2025, UN Security Council resolutions against Iran were reinstated.

The International Atomic Energy Agency's report, published in May 2025, indicated that Iran's stockpile of enriched uranium stood at 9,247 kilograms, of which more than 408 kilograms were enriched to 60% or higher.

Although two rounds of negotiations on Iran's nuclear program took place between the U.S. and Iran at different times, the parties failed to reach a concrete agreement, and both rounds of talks ended in conflict. The most recent of these conflicts began on February 28, when the U.S. and Israel launched military airstrikes against Iran.

In response, Iran began launching missile and drone strikes against Israeli and U.S. targets in countries across the region. Over time, the conflict expanded significantly and engulfed various countries in the Middle East.

The conflict has placed the region's energy infrastructure and maritime shipping under serious threat. Due to security tensions in the Strait of Hormuz, global oil prices have risen significantly. Iran fully controls the Strait of Hormuz and allows passage only to vessels it deems necessary.

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