Nicosia, Cyprus. The green transition is the most sustainable solution for Cyprus’ economic and overall security amid growing instability in the Middle East, according to University of Cyprus economics professor Marios Zachariades. He said rising geopolitical tensions are already affecting global markets and could have lasting consequences.
Green transition and Cyprus security
“The green transition constitutes the most permanent solution from the perspective of economic and overall security for Cyprus,” Zachariades told the Cyprus News Agency (CNA).
Oil prices and energy infrastructure concerns
Zachariades said oil prices have once again exceeded $100 per barrel, describing this as a key concern for the global economy.
“It has exceeded $100 again, there are fluctuations, but this is the first thing that causes concern and brings additional costs, which cannot simply be temporary because oil and energy infrastructure in the Gulf has been destroyed,” he said.
“This is now a real factor that cannot leave the global economy unaffected,” he added.
Uncertainty and investment decisions
He identified heightened uncertainty as a major risk, saying shifting public statements from those involved in the crisis are adding to market instability.
“A great deal of uncertainty is being created, and if it is not largely resolved within the month, if we enter the final month of spring and still do not know what the coming weeks will bring, whether the Strait of Hormuz will reopen or whether there will be a broader ceasefire, then this uncertainty will increasingly affect investment decisions,” he said.
Trade disruptions and food production risks
Zachariades warned of disruptions to global trade, noting that around one third of maritime fertiliser trade passes through the affected region, raising concerns about food production.
“This could have negative effects on food production and lead not only to an economic crisis but also to a humanitarian crisis,” he said.
How do you think higher energy prices and trade disruptions could affect Cyprus in the coming months?
