Energy expert warns of price hikes following disruption in the Strait of Hormuz

Energy expert Charalambos Ellinas stated that the conflict in Iran has led to the disruption of 10 million barrels of oil per day reaching global markets. He emphasized that the Strait of Hormuz, a critical route for oil and liquefied natural gas, is effectively closed to most traffic. These supply cuts cannot be replaced in the short term, leading to significant instability in global material supply chains. Concerning the domestic situation in Cyprus, Ellinas predicts further sustained increases in gasoline, diesel, and electricity prices. He suggested that the Cypriot government should implement price caps by maintaining pre-war profit margins, station costs, and VAT rates. He noted that only the actual increase in import costs for fuel should be reflected in final consumer prices. While Gulf countries usually possess surplus production capacity, they currently remain blocked from exporting. Reports suggest that the United States may begin releasing reserves to mitigate the impact.