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Zachariades: Impact on Cyprus Will Depend on Duration of Crisis

Published March 2, 2026, 14:10
Zachariades: Impact on Cyprus Will Depend on Duration of Crisis

Economist Marios Zachariades estimates that the duration of the regional dispute in the Middle East will determine the extent of the impact on the Cypriot economy. Although it is still too early to assess the economic consequences, there is a possibility of a new inflationary episode due to rising oil prices and uncertainty is created for investors and tourists. The geographical proximity of Cyprus to the conflict area causes concern, while short-term impacts on tourism are expected. The strikes on the British Bases intensify international concerns. Mr. Zachariades notes that Cyprus has benefited economically from similar crises in the past, but today a negative correlation with regional risk is forming. The rise in oil prices increases the likelihood of recession and reinforces uncertainty, while risks to the supply chain are also not ruled out. European markets are moving downwards, while oil and gold are recording gains. Mr. Zachariades calls for calm to avoid further uncertainty.