Dispatch From Prague: What Are Europeans Asking About the Iran War and Global Economy?

Why It Matters

The trajectory and duration of the Iran conflict could amplify energy-driven inflation and geopolitical risk, reshaping support for Ukraine and the stability of global markets. How governments and firms respond will influence supply chains, energy prices, and strategic alignments across Europe and beyond.

Summary

Reporting from Prague after a week of Atlantic Council events, conversations in Europe are dominated by fears over the Iran war and a mounting global energy shock, with prices creeping up and market volatility rising. Policymakers and business leaders are debating how the conflict will end and how much more strain the global economy can absorb amid prior shocks like tariffs. Attendees are also concerned about knock-on effects for Ukraine, including whether higher oil and gas prices will bolster Russia and whether U.S. support will endure. Briefings highlighted Ukraine’s limited leverage and drone experience as factors in the evolving security calculus.

Original Description

“The conversation everyone wants to have is about the war in Iran and the global energy shock.”

From Prague, Atlantic Council geoeconomics experts Josh Lipsky and Charles Lichfield reflect on what they’re hearing across Europe.