The Iran war is already taking a toll on major economies around the world, according to business surveys on Tuesday which showed how a surge in energy prices and rising uncertainty were dampening activity and pushing inflation expectations higher. A reading above 50 indicates expansion in the private sector. Within the national readouts, business confidence dropped markedly among French firms while German private sector growth slowed to a 3-month low. S&P Global's US survey painted a similar picture of the world's largest economy, with higher energy prices raising inflation fears amid weaker business sentiment that pointed to weaker private sector employment prospects. "The scenario is very dependent on the duration of the conflict and on the outlook for energy prices," said Nicola Nobile of Oxford Economics, commenting on the euro area impact.

Source: The Telegraph March 24, 2026 17:48 UTC