Italy's budget watchdog UPB says the Iran war is expected to reduce Italian GDP growth by 0.2-0.4% in 2026 and 2027

The UPB's assessment indicates that the geopolitical situation regarding Iran will have a tangible impact on Italy's GDP growth, with reductions projected for the next two years. This likely reflects increased energy costs and broader economic uncertainty tied to the conflict, which could weigh on domestic consumption and investment. Traders should consider how these growth downgrades might influence Italian debt yields and overall risk sentiment in the Eurozone.