Euro zone private sector growth nearly stalled this month as inflation ​expectations surged and delivery times soared, adding to mounting evidence that the bloc is already suffering a tangible drag from ‌the U.S. and Israeli war with Iran, Reuters reported. With oil prices up by two-thirds since the start of the year as a key transport corridor is shut, euro zone inflation is already rising and economic growth is taking a hit. Expensive fuel saps household purchasing power, lowers corporate profit margins and hits confidence.

The Supreme Court will consider a common clause in commercial loan agreements that allowed Bank of Ireland to raise interest rates in line with its increased lending costs in the wake of the financial crash, the Irish Times reported. In deciding the case is of significant public importance, a panel of three Supreme Court judges noted the interest variation clause had a “serious impact on borrowing and on the margins of commercial customers”.

Danish Volkswagen supplier Støtek A/S, based in Vojens, has filed for administration, according to boosted.dk. The relevant insolvency court in Sønderborg has placed the company into administration. As a result of the insolvency, all 55 employees have been made redundant. Støtek specialised in highly advanced melting and dosing furnaces for the aluminium industry and supplied the automotive sector in particular. Its customers included Volkswagen, Audi and BMW. Notably, the company had previously been praised by Volkswagen itself for its efficiency.

Labour is under pressure to explain why the Government has handed a troubled housebuilder more than £300m in taxpayer-backed loans and contracts, The Telegraph reported. Paul Holmes, the shadow housing minister, said there were “questions about Labour’s judgement” after it partnered with Vistry to deliver affordable housing. The London-listed building firm has been handed around £315m in grants and loans, according to Matthew Pennycook, the housing minister.

Britain's financial regulator said on Friday it had launched an enforcement investigation into mortgage ​lender Market Financial Solutions, which collapsed in ‌February leaving creditors including major banks and private credit funds facing a shortfall in excess of 1.3 billion pounds ($1.74 billion), Reuters reported. The Financial ​Conduct Authority said in a statement that ​London-based MFS was only registered with it ⁠and supervised for compliance with money laundering, terrorist financing ​and transfer of funds regulations, and not for wider ​financial regulation.

Citi group provided a GBP 100M line of credit to Interbridge Mortgages, a fast-growing UK lender backed by Paresh Raja, just as his Market Financial Solutions was hurtling toward collapse, according to a Bloomberg report. Raja controls a 40% stake in the Interbridge holding company and around GBP 30M of the funding line has been drawn. There is no indication that Interbridge was affected by the collapse of MFS, which has been accused of fraud that could leave major lenders facing losses of around GBP 1.3B.

Spain's Prime Minister Pedro Sánchez said his government would mobilise €5 billion to shield the economy from the impact of the war in Iran, EuroNews.com reported. "The war will cost Spaniards €5 billion," he said, adding that additional resources could be deployed if necessary. The package is designed to support around 20 million households and 3 million companies. While it will not fully offset the effects of the conflict, the government hopes it will soften the economic blow. Sánchez also said that the measures will save up to €200 million for energy-intensive industries.

Russia’s central bank Friday cut its key interest rate for a seventh straight meeting, despite a surge in oil prices following the U.S.-Israel attack on Iran that promises to boost an economy that had been faltering, the Wall Street Journal reported. The Bank of Russia lowered borrowing costs to 15% from 15.5%, down from a 2025 peak of 21%.