Fears of economic strain are intensifying across Europe as the United States-Israel war on Iran approaches the one-month mark. German Defence Minister Boris Pistorius described the conflict as an economic "catastrophe", while the United Kingdom's economic growth prospects for this year received a sharp downgrade.

Speaking at a meeting in Australia, Pistorius stated, "If it comes to a point where we have a ceasefire, we will discuss every kind of operation to secure the peace." He made it clear: "This war is a catastrophe for the world's economies. The impact is absolutely evident already now." The Organisation for Economic Co-operation and Development (OECD) warned that the global economy, which was on a path towards growth, is now veering from that trajectory.

The OECD cut its 2026 forecast for British economic growth by half a percentage point to 0.7 percent, compared with a 0.4 percentage point downgrade for the eurozone and a 0.3 percentage point upgrade for the US. In its report, the organization noted, "Planned fiscal tightening and higher energy prices are anticipated to keep growth subdued in the United Kingdom."

Pistorius also addressed that the US had not consulted Germany before it, along with Israel, waged a joint war on Iran on February 28. He said, "Nobody asked us before. It's not our war, and therefore we don't want to get sucked into that war. There is no strategy, there is no clear objective." He urged the US and Iran to end the conflict.

Iran insists that the Strait of Hormuz remains open to "non-hostile" ships. The collapse of maritime traffic through the waterway has prompted the biggest global energy crisis in decades. European Commission President Ursula Von der Leyen has called for negotiations with Iran and an end to hostilities, as the bloc urged member states to start early on meeting next winter's gas storage targets.

Spanish Prime Minister Pedro Sanchez called for an end to the war, saying it presented a "far worse" scenario than the invasion of Iraq in 2003. He told parliament, "This is not the same scenario as the illegal war in Iraq. We are facing something far worse. With a potential impact that is far broader and far deeper." The left-wing prime minister has been one of the strongest critics in Europe of the US-Israel attack on Iran, describing it as "unjustifiable".

Source: www.aljazeera.com