University of Cyprus professor warns of economic impact from Middle East conflict

Marios Zachariades, an economics professor at the University of Cyprus, stated that the green transition is the most viable long-term solution for the island's economic and security stability. Speaking to the Cyprus News Agency, he highlighted that geopolitical tensions in the Middle East are negatively affecting global markets. Zachariades noted that oil prices have surpassed $100 per barrel due to the destruction of energy infrastructure in the Gulf region. He warned that these costs are likely to be persistent rather than temporary. Furthermore, he identified market uncertainty as a significant risk to investment decisions, particularly if the crisis remains unresolved by the end of spring. He advised the Cypriot government to maintain fiscal prudence to ensure the state can support the economy if the crisis deepens. Regarding the tourism sector, he recommended promoting Cyprus in markets less susceptible to regional instability.