Gulf supply shocks could hit euro area growth, warns ECB

The European Central Bank (ECB) has warned that disruptions to trade through the Strait of Hormuz could have far-reaching consequences for the global economy, with supply shortages extending well beyond higher energy prices and placing up to 3 per cent of euro area production at risk in a worst-case scenario.

In a blog post published on Wednesday, ECB economists Pablo Aguilar, Lukas Boeckelmann and Antoine Kornprobst said that while recent tensions in the Middle East have eased, the Strait of...