Economic impact of Middle East conflict on Cyprus and the EU

Two months into the Middle East conflict, petrol prices in Cyprus have risen by 16.80% compared to pre-war levels. Brent crude returned to approximately $107 per barrel as peace talks between the US and Iran remain stagnant. Despite an April 8 ceasefire reducing direct attacks, shipping through the Strait of Hormuz remains heavily disrupted. European Commission data indicates that average Euro-super 95 prices in the EU increased by 12% between February 23 and April 20, 2026, rising from €1.64 to €1.83 per liter. In Cyprus, the average price of gasoline rose from €1.31 in February to higher levels by late April. Simultaneously, the Cyprus Consumers Association reports that retail prices for essential goods have risen by 1% to 14% since April 15. The most significant price hikes in the supermarket sector are observed in bread, milk, flour, and pasta. Households, particularly vulnerable groups and pensioners, are facing increased financial pressure due to these ongoing inflationary trends.