Euro on the Edge: Prolonged Iran War Could Push Currency Below Parity
Experts warn that a longer Iran conflict could trigger sustained energy-price shocks, sending more capital into dollars and pushing the euro toward $1.10–$1.12 or even below parity. A weak euro would hit German industry and possibly spark stagflation, complicating ECB policy as it balances inflation with growth. A rapid end to the war would help the euro recover somewhat, but a prolonged blockade could deepen recession risks across the eurozone.