Eurozone retail sales slipped in March as the war in Iran sent fuel prices soaring across the single currency bloc. Sales volumes dropped 0.1% month-on-month, the European Union's statistics agency said Thursday, missing economist expectations for a 0.1% rise.

The decline was driven by the largest fall in automotive-fuel sales since August 2023. Petrol and diesel prices sky-rocketed following the outbreak of conflict in Iran, hammering consumer spending at the pump. However, the March data is unlikely to capture the full extent of the energy-price shock still rippling through the economy.

Falling consumer sentiment linked to the Middle East tensions suggests demand will weaken further in the months ahead. The retail contraction adds to mounting concerns about eurozone economic resilience amid elevated energy costs.