Goldman Sachs says Middle East conflict may become a catalyst for the European economy, with new momentum for defense and energy security spending.

Golden Ten Data reported on March 4 that Goldman Sachs equity strategists pointed out in a research report that although European companies are highly sensitive to energy prices, the Middle East conflict may provide new opportunities for stock market growth momentum. The strategists stated: "Europe's growth largely depends on government fiscal spending in defense, infrastructure, and energy security. We believe this conflict adds further impetus to these areas. Unless there is a massive sell-off in the bond market that limits the government's ability to support spending, we believe this trend will continue." Goldman Sachs maintains its forecast for the STOXX Europe 600 Index's earnings per share growth of 5% to 7% in 2026, but notes that this forecast is based on the assumption of a brief outbreak of conflict. Currently, the STOXX Europe 600 Index is up 1.5%.