Energy Crisis and Impact on Greece

Markets are trending upwards, anticipating an agreement between the US and Iran. This optimism is based on the need for both sides to reach a deal.

President Trump is reacting to rising oil prices and the yield on the 10-year US Treasury bond, while Iran wants to avoid the consequences of potential US attacks on energy infrastructure.

However, the damage to the economy has already been done. According to experts, energy normalcy will return from autumn onwards, even if the conflict stops immediately.

IEA Executive Director Fatih Birol stated that the effects of the war in Iran are equivalent to the oil crises of the 1970s and the 2022 natural gas crisis, affecting the trade of oil, natural gas, petrochemicals, fertilizers, sulfur, and helium.

The threat of stagflation is returning, with Greece facing conditions similar to the 2022 crisis. The budget has been drawn up with an oil price of $62 per barrel.

According to the Ministry of Finance, if the oil price remains below $80, inflation will be 2.5%. If the price reaches $100, inflation will rise to 4.7% and growth will fall by 50 basis points.