Persistent high temperatures could cost Italy between €6 billion and €12 billion annually, according to a report released on Saturday (18 July). Prolonged heat continues to weigh on businesses, workers and the country's tourism sector.
The report by the Italian Confederation of Business, Tourism and Services warns that between 30 and 60 days of extreme heat each year could drive up energy costs, reduce labour productivity and cut business turnover.
According to the report, prolonged heatwaves are also expected to alter consumer behaviour and travel patterns, creating additional challenges for retailers and tourism operators.
Temperatures above 30°C place significant physical strain on workers and reduce concentration, while Oxford Economics estimates severe heat events can reduce quarterly labour productivity growth by two percentage points.
The hot, dry conditions have also disrupted transport and energy production across Europe.
Low water levels have restricted shipping on rivers such as the Rhine. Warmer river temperatures have forced cuts to nuclear power generation, including a reduction in French output earlier this week.
Although conditions are expected to ease slightly from Monday, much of Italy remains under heat warnings.
Italy's Health Ministry placed 16 cities under its highest-level red heat alert on Saturday, with 14 cities expected to remain under the warning on Sunday.
Meteorologists said southern Italy continues to experience the most intense heat, with temperatures forecast to approach 50°C in some areas. Inland Sardinia could reach 46°C, while parts of Sicily may see temperatures of 45°C.
Authorities are also investigating the death of a 78-year-old woman who collapsed on a beach in southern Italy, with heat exposure not ruled out as a contributing factor.
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An agreement between Iran and the U.S. to reopen the Strait of Hormuz is expected "soon," a U.S. official has said. The deal would result in the resumption of commercial shipping through the sea passage and the lifting of an American naval blockade on Iranian ports.
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A deal on a new route for vessels through the Strait of Hormuz is "very close," Iranian Foreign Minister Abbas Araghchi has said, while warning that the reopening of the waterway depends on the U.S. meeting other conditions, including paying compensation to Iran.
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