International markets are once again heading down new paths, following the U.S. strikes against Iranian targets and Tehran’s retaliatory attacks. Trump’s stance only adds fuel to the fire, yet the markets seem to have grown accustomed to the U.S. president’s erratic behavior.

“The market continues to view Trump’s statements with considerable skepticism. After all, just a few weeks ago he was praising the Iranian leadership. So far, all signs indicate that the escalation of the conflict remains relatively limited.”
Saul Kavonik – Head of Energy Research at MST MARQUEE

Nevertheless, this does not negate the fact that the markets had begun to recover from the effects of the war, with the new unrest turning the Strait of Hormuz into a minefield once again.

“For every three ships leaving the Strait in the past month, only one has entered empty. This indicates that, particularly Western shipping companies, are avoiding increasing their exposure in the region until they are certain that calm has been restored — a situation that, of course, has been completely overturned in the last 48 hours.”
Saul Kavonik

The price of Brent crude rose by more than 5%, surpassing $78 per barrel. Meanwhile, U.S. crude approached $74.

“The inflation picture is not yet settled. We continue to expect repercussions, as oil market experts estimate that it will take several months—likely nearly a year — for distribution, refining, and transportation to fully return to normal, even if the Strait of Hormuz remains open.”
Chris Brigati – Chief Investment Officer at SWBC

“What central banks should be concerned about are the secondary effects. Secondary effects include a wage-inflation spiral, where prices rise, workers demand higher wages, wage increases drive up business costs, and this leads to further price increases.”
Paul Donovan – Economist

In record time

Before prices have even begun to rise internationally, experts in Cyprus are rushing to lay the groundwork for increases.

“A ‘sudden spark’ could reignite tensions in the Strait of Hormuz, with unpredictable consequences. For this reason, it is impossible to make definitive predictions about the future course of fuel prices.”
Savvas Prokopiou – President of the Pancyprian Association of Gas Station Owners

In any case, the Consumer Protection Agency urges everyone to avoid making alarmist statements about price increases.

Watch the report by Kleio Vourkou: