European finance ministers discuss economic impacts of Middle East conflict

EU finance ministers, led by Eurogroup President Kyriakos Pierrakakis and Makis Keravnos, met in Brussels to assess the economic consequences of the ongoing Middle East conflict. The meetings, held across the Eurogroup and Ecofin sessions, focused on rising energy prices, which recently exceeded $110 per barrel. Officials expressed concern over potential broader impacts on inflation, supply chains for fertilizers, aviation costs, and financial stability. The council evaluated various scenarios, ranging from a conflict resolution within three months to a protracted war lasting until the summer of 2027. These projections consider the potential involvement of the United States, Israel, Iran, and various Arab nations. Discussions also covered the Belgian 2026 draft budget and advancements in digital finance to support European markets. Ministers emphasized the need for coordinated policies to protect households and businesses from energy price volatility. Authorities aim to reassure markets while monitoring the security situation near the Strait of Hormuz.