What percentage of euro zone companies are raising prices in response to the Iran war, and how does that compare to the response after Russia's invasion of Ukraine?

Only a third of the euro zone's largest companies—56 out of 175—have raised or plan to raise prices in response to the Iran war, according to a Reuters AI-assisted analysis of earnings calls; this contrasts sharply with nearly two-thirds of companies that raised prices following Russia's invasion of Ukraine in 2022, when energy shocks combined with strong post-pandemic demand and fiscal support drove inflation into double digits.

Why are euro zone firms less able to pass on higher energy costs now compared to 2022?

Firms currently face a weaker economic backdrop: the labour market is less tight, growth is more subdued, and there is no substantial fiscal policy stimulus—unlike in 2022—while euro zone inflation started at just 1.9% before the Iran war, versus 5.9% at the onset of the Ukraine conflict, resulting in far less pricing power and broader reluctance to raise prices, especially among consumer-facing firms like retailers and automakers.

Euro Zone Firms Struggle to Raise Prices Despite Iran War Shock

Jun 1, 2026

A Reuters analysis shows only one-third of Euro zone firms plan price hikes despite Iran war energy shocks, contrasting with 2022 trends. While chemical giants like BASF face input cost pressures, subdued demand limits broader pass-through.

reuters

2026-06-01

Euro Zone Firms Struggle to Raise Prices Despite Iran War Shock

Euro Zone Firms Struggle to Raise Prices Despite Iran War Shock

FAQ