Europe Heat Wave Compounds Iran War Energy Shock on Food and Markets
π‘οΈ EUROPE β A second supply shock is hitting the same economies already underwater from Hormuz. π LOOK CLOSER: European markets are absorbing energy repricing from the Hormuz blockade while heat is simultaneously cutting crop yields and straining logistics. Indebted sovereigns β Italy, France, Greece β face a dual squeeze: higher energy import costs and food inflation compressing consumer demand. The ECB's rate calculus gets harder when inflation has two simultaneous supply-side drivers neither monetary policy can fix.