Euro zone economy barely grew in first quarter

FRANKFURT, April 30 (Reuters) - ‌The euro ​zone ​economy saw faint growth in the first quarter, a preliminary estimate ‌showed on Thursday, offering the first ⁠snapshot of activity since the outbreak of the ‌Iran conflict.

The energy-importing euro ‌zone is seen as particularly vulnerable among advanced economies to disruptions in oil, gas ​and other shipments through the Strait of Hormuz, which began in late ⁠February.

Eurostat said gross domestic product in the 21-country currency area ​rose 0.1% quarter-on-quarter in the three months to March, according to a ​flash reading, lagging economists' forecasts ‌and the pace recorded in the previous quarter, both at 0.2%.

A ⁠string of surveys this week points to a further slowdown in activity, with business ⁠sentiment weakening, services deteriorating, profits falling and exports still ​hit by tariffs, while banks signal tighter credit conditions.

The subdued backdrop complicates the European Central Bank’s response ‌to an emerging, energy-driven rise in inflation.

The ECB is widely expected ‌to keep rates unchanged on Thursday, ⁠though markets are ‌pricing in three ​to four increases over the coming year.

(Reporting by Francesco Canepa;Editing by Alexandra ‌Hudson)

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