Higher oil and gas prices are affecting all parts of the European economy, from businesses to households, pushing the EU toward weaker economic growth and higher inflation, Dombrovskis said. EU countries should target energy price relief measures more carefully toward the most vulnerable sectors and avoid broad steps that could increase overall energy demand, he added.
Preliminary estimates show eurozone inflation accelerating to 3.0%, Dombrovskis said.
Europe is facing a stagflationary trend rather than full stagflation, Eurogroup President Kyriakos Pierrakakis said.
“We are in a stagflationary trend, meaning we are revising growth forecasts downward and inflation forecasts upward,” he said.
Stagflation is an economic crisis in which stagnating production coincides with accelerating inflation.
Tehran is no longer demanding that the blockade be lifted as a precondition for talks, The Wall Street Journal reported, according to Iran International. Iran is instead proposing simultaneous discussions on reopening the Strait of Hormuz, security guarantees and its nuclear program.
Iran has signaled through mediators that it is ready to hold a new round of talks in Pakistan early next week if Washington accepts the new proposal as a basis for dialogue, the report said.
Trump informed Congress that the war with Iran had ended, Politico reported. The move is linked to a 60-day deadline after which a military operation must end unless lawmakers separately approve it.