Middle East conflict hits Cyprus economy

The escalation of the conflict between the US, Israel, and Iran is already having a serious impact on the Cyprus economy.

The tourism sector has been particularly affected—following drone attacks near the British base at Akrotiri, safety concerns have intensified, leading to a wave of booking cancellations.

At the same time, the cost of living is rising. Over the past month, the price of petrol has increased by approximately 11%, while diesel has risen by nearly 17.5%. On average, drivers are now paying dozens of euros more for each fill-up.

Experts also warn of a potential rise in electricity tariffs. Depending on oil prices, bills could increase by up to 20% by the summer.

Authorities note that Cyprus remains vulnerable due to its dependence on oil-based energy, and major infrastructure projects continue to be delayed.

Against this backdrop, further increases in the prices of goods and services are expected, heightening pressure on households and businesses.