Europe Heat Wave Compounds Iran War Energy Shock on Food and Markets
🌡️ EUROPE — A second supply shock is hitting the same economies already underwater from Hormuz. 📌 LOOK CLOSER: European markets are absorbing energy repricing from the Hormuz blockade while heat is simultaneously cutting crop yields and straining logistics. Indebted sovereigns — Italy, France, Greece — 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.