Iran War Threatens Economic Recovery

As a result of the Iran war, crude oil and natural gas prices have surged. Moreover, uncertainty over the duration and future course of the conflict is dampening the investment climate in the EU. This will also affect Austrian industry, which has been suffering from weak demand for capital goods for years. The inflation rate should continue to fall despite the Iran war, though the recent rise in energy prices is slowing this decline. The unemployment rate will remain at the elevated level of the previous year in 2026 and will not fall until 2027.