European Central Bank committee: if the Middle East conflict continues to escalate, the European Central Bank's base forecast may become invalid.

Sina Finance News on March 31st, European Central Bank Governing Council member Stournaras said that if the Iran-related conflict were to prolong, it could trigger stagflation and lead to deviations in the ECB's baseline scenario forecast. Stournaras said at an event in Bucharest, "Geopolitical instability, escalating conflicts in the Middle East, a new major energy crisis triggered by this, trade protectionist measures, economic policy uncertainty, financial market fragmentation, and climate change all constitute significant downside risks." "If the conflict continues, it will inevitably give rise to stagflation, which means inflation rising and economic growth slowing. In this situation, our ECB's baseline scenario forecast will no longer hold."