The war in the Middle East is spreading uncertainty across Greece’s business community, driving up commodity prices and complicating corporate planning for the year ahead.

“We don’t know what tomorrow will bring,” a senior figure in the business world told the Greek financial outlet OT.gr. “Today all commodities went up: wheat, corn, soybeans. The problem is that deals aren’t happening, because sellers are holding back, expecting prices to rise even further.”

The comments capture the growing unease among companies as markets react to the Iran conflict that has engulfed the whole region and the broader implications it’s having on energy and commodity prices.

A similar sentiment was expressed by the managing director of the International Monetary Fund, Kristalina Georgieva, in a keynote speech on Monday in Tokyo.

“ My advice to policymakers everywhere in this new global environment? Think of the unthinkable and prepare for it,” she said.

Corporate Budgets Under Pressure

For many companies, the immediate challenge lies in financial planning.

Most companies — including multinational corporations and Greek manufacturing firms — finalized their annual budgets late last year based on oil prices at significantly lower levels, roughly around $80 per barrel.

If the current conditions persist, executives say many businesses will have little choice but to revisit those plans. By the end of April, companies may be forced to revise budgets and implement spending cuts in order to remain financially stable through the end of the year.

Government Watching Oil Prices Closely

Greek government officials say the state budget was drafted with a more pessimistic scenario in mind, assuming oil prices could rise to $100 per barrel.

Even so, they warn that if the war continues beyond the end of March, the economic impact could become difficult to manage starting in early April. In such a scenario “we could lose control of the situation,” according to a government source talking to OT.gr.

While the government is publicly urging calm, concerns about rising prices — beginning with fuel costs at gas stations — are evident in private discussions.

Emergency Measures on the Table

Development Minister Takis Theodorikakos has prepared a framework of emergency measures in case a new wave of price increases emerges. Prime Minister Kyriakos Mitsotakis has also referred to the possibility of such steps.

For now, officials say there are no signs of price increases in everyday consumer goods.

Among the measures under consideration is the possible reinstatement of a cap on gross profit margins, a policy previously introduced to limit price increases during periods of high inflation.

The measure was withdrawn last June after strong opposition from businesses, which argued it placed heavy constraints on their operations. But if the current situation persists and companies face higher operating costs, the government may reconsider it.

Price Increases May Come After Easter

Business leaders warn that if companies continue to face higher costs for energy and raw materials, price increases could become unavoidable.

In that case, businesses would likely begin raising prices shortly after Easter.

Even if the conflict were to end within one or two weeks, government officials caution that the economic repercussions already triggered may not be easily contained.

Source: ot.gr