A prolonged closure of the Strait of Hormuz could have far-reaching consequences for the global economy, Greece’s Economy Minister Kyriakos Pierrakakis has warned, raising concerns over what he described as a potentially unprecedented energy crisis.
Speaking at an international economic forum in Washington, Pierrakakis said the situation in the Middle East could escalate into the most severe energy crisis in history if not properly managed. He noted that such a scenario could surpass the combined impact of previous major crises, including the oil shocks of the 1970s and the energy turmoil following Russia’s 2022 invasion of Ukraine.
“If this continues, if the Strait of Hormuz remains closed for a prolonged period, the consequences will be significant,” he said.
Pressure on Europe’s economy
The warning comes as Europe faces growing economic uncertainty. According to Pierrakakis, forecasts are already being revised, pointing to lower growth and higher inflation compared to earlier expectations.
He stressed that the scale of the impact will ultimately depend on how long the disruption lasts and how deep it becomes. Even under more optimistic scenarios, he noted, it could take at least two months for energy supply levels to return close to normal.
Targeted response measures
In response to rising energy prices, the European Commission has issued guidelines for support measures across member states. Pierrakakis emphasized that any intervention should be temporary, targeted and tailored to support those most affected.
“These measures should primarily assist the most vulnerable, especially during periods of sharp increases in oil prices,” he said, adding that similar policies are already being implemented across Europe.
Strategic ties and long-term priorities
Addressing broader geopolitical concerns, Pierrakakis underlined the importance of maintaining strong transatlantic relations, arguing that cooperation between the European Union and the United States remains in their shared strategic interest.
He also pointed to the need for deeper economic integration within Europe, including progress on investment frameworks and greater banking unity.
Greece’s economic outlook
On the domestic front, Pierrakakis highlighted Greece’s recent economic progress, attributing improvements in credibility and debt reduction to fiscal stability, structural reforms and accelerated digital transformation.
He described digital government services as a key driver of change, enabling efficiencies across sectors such as healthcare and tax administration.
“Fiscal stability is essential,” he said, adding that sustained reforms and political stability are critical to maintaining economic momentum.
