European Central Bank regulator: Eurozone banks face multiple threats from Iran war.

European Central Bank Banking Supervisory Board member Masado revealed that the direct impact of the Iran war on Eurozone banks is limited, but the greater risk lies in the possibility that a weak economy may affect the banks' balance sheets. In a wide-ranging interview, Masado addressed a series of issues ranging from the tense situation in the Middle East to recent fluctuations in the private credit market, while also warning that the surge in complex securitization transactions requires more careful scrutiny. The possibility of a larger conflict erupting in the Middle East has heightened concerns about inflation soaring again and added new pressure on Eurozone economic growth. Part of the Eurozone's natural gas is dependent on suppliers in the Gulf region, while Asian goods are transported through the Suez Canal route. Masado stated that Eurozone banks have a very small direct risk exposure to Iran and Israel relative to their absorptive capacity, with asset exposure accounting for 0.7% of core capital and liability exposure for 0.6% of core capital. "Even including neighboring countries, the risk exposure is quite limited, accounting for less than 1% of total assets of regulated entities," he said in an interview.