OREANDA-NEWS   The economy of the European Union (EU) risks experiencing a stagflation shock in the event of an escalation of the Middle East conflict, European Commissioner Valdis Dombrovskis said. He was quoted by Euronews.

According to him, the economic consequences of the Iranian crisis will depend on how long the conflict lasts and how widespread it spreads. If it drags on and causes further disruptions in oil and gas supplies, it could cause a stagflationary shock in the European economy, as prices rise sharply and growth slows.

In addition, the European Commissioner answered a question about the US plans for Iran. Dombrovskis admitted that Washington had not informed Brussels of what it was going to do and had not consulted with European leaders before attacking Iran.

According to US Secretary of Energy Chris Wright, it is possible that shipping in the Strait of Hormuz will resume in the next few weeks. However, the official refrained from voicing more precise dates.