Germany Predicts Global Economic Crisis; OECD Lowers UK Growth Forecast
Europe is warning of deep economic damage as the United States-Israel war on Iran nears one month. The conflict began on February 28, 2026. Leaders say its effects are already visible across markets and trade routes.
Political responses and calls for restraint
German Defence Minister Boris Pistorius spoke in Canberra on Thursday. He told Australian counterpart Richard Marles that Germany will not be drawn into the fighting.
Pistorius said Germany stood ready to help secure peace if a ceasefire is agreed. He criticized the lack of consultation before the operation began.
Stance on military involvement
Pistorius warned there is no clear strategy or exit plan. He said Germany does not want to be “sucked into” the war.
He also said Berlin would consider operations to protect navigation in the Strait of Hormuz if hostilities stop. For now, he urged an immediate ceasefire.
Economic outlook and warnings
European officials and institutions warned the conflict threatens global growth. Germany Predicts Global Economic Crisis, according to senior ministers.
The Organisation for Economic Co-operation and Development published new forecasts on Thursday. The OECD warned that the global economy is veering off a previously expected growth path.
Forecast changes and figures
The OECD lowered its 2026 UK growth forecast to 0.7 percent. This cut amounted to a half percentage point downgrade.
It also trimmed eurozone growth by 0.4 percentage points. By contrast, US growth projections rose by 0.3 percentage points.
Analysts cited planned fiscal tightening and higher energy costs as key drivers of the UK downgrade. The OECD said lower policy rates next year may partly offset the impact.
Reports summarizing the shift include the line OECD Lowers UK Growth Forecast as a central finding.
Energy market shocks and maritime disruption
Marine traffic through the Strait of Hormuz has sharply declined. Iran insists the waterway remains open to non-hostile vessels.
The disruption triggered the largest energy shock in decades. Natural gas prices in the European Union rose by more than 30 percent since the fighting began.
Key incidents affecting supply
- Israel attacked Iran’s South Pars gasfield, affecting critical infrastructure.
- Iran retaliated with strikes on Qatar’s Ras Laffan facilities.
- These strikes and shipping losses drove energy price spikes and supply fears.
European Union reactions
European Commission President Ursula von der Leyen called for talks with Tehran. She urged an end to hostilities and immediate negotiations.
The Commission also asked member states to begin filling gas storage for next winter early. The aim is to reduce vulnerability to further supply shocks.
Voices from Madrid
Spanish Prime Minister Pedro Sánchez urged an end to the conflict. He described the present crisis as potentially far worse than the 2003 Iraq invasion.
Sánchez has been a vocal critic of the US-Israel offensive. He called the attack unjustifiable and warned of broad consequences.
Filmogaz.com will continue to monitor developments. European leaders are increasingly focused on preventing a larger economic collapse.
