Politis

Warning Bell for Economic Impacts from Middle East Crisis

Published March 2, 2026, 09:17
Warning Bell for Economic Impacts from Middle East Crisis

The crisis in the Middle East is expected to have an impact on the Cypriot economy, affecting tourism, the supply chain and the cost of fuel. KEVE is monitoring developments with concern and is coordinating with chambers of commerce abroad. The possibility of disruptions in the supply chain and a surge in oil prices are of particular concern, given the risk of inflationary pressures. Tourism, a pillar of the Cypriot economy, is expected to be hit, with a possible slowdown in bookings. Businesses and tourism partners are in consultation to mitigate the effects. Fuel prices are already rising, and increases are expected to become more apparent over the next 10 days. This increase is smaller compared to the corresponding one at the start of the war in Ukraine in 2022. OEB has established a special team to support businesses that may face problems in the management, execution and management of their activities due to the crisis in the Middle East.