Energy Prices Rise, But Europe Still Safe From Stagflation

The chairman of the Eurozone finance ministers, Kyriakos Pierrakakis, told a Washington event that the worst case—stagflation triggered by the U. S. and Israel’s conflict over Iran—is not yet happening. He said that the sharp jump in oil, gas and fertilizer prices caused by a potential shutdown of the Strait of Hormuz could slow growth and raise inflation, but how bad it gets depends on how long the passage stays closed. Pierrakakis added that Europe is not in that dire situation yet, and the impact will hinge on the duration of any blockage.The European Commission has warned that such a price surge could push the bloc toward stagflation, but officials remain cautious. The speaker’s comments came during a conference hosted by Semafor in Washington, where he highlighted the fragile link between energy costs and economic health. While higher prices are a concern, experts point out that the economy can adapt if supply disruptions are short‑lived. Overall, policymakers stress vigilance but note that the worst outcomes are still far off.