Dialogos

Rising Cost of Living in Cyprus as US-Israel-Iran Conflict Impacts Economy

Published March 22, 2026, 09:00
Rising Cost of Living in Cyprus as US-Israel-Iran Conflict Impacts Economy

The conflict between the US-Israel and Iran has begun to impact the Cypriot economy, with tourism taking the first hit. The drone attack on the British base in Akrotiri has created a climate of uncertainty, leading to booking cancellations and losses for the tourism sector. At the same time, the cost of living in Cyprus is starting to rise again, with fuel prices rising significantly. Unleaded 95 has increased by 11.4% in a month, while diesel by 17.5%. This significantly burdens the family budget, as the cost of a full tank has increased by 17 euros. There is also concern about electricity prices, with the president of EAC warning of possible increases of up to 20% depending on the course of international energy prices. A bi-monthly electricity bill of 250 euros could reach 300 euros. The Cyprus Consumer Association points out that current prices are higher than in 2022, when the state intervened with fuel subsidies. The government is called upon to take measures to protect citizens from rising prices and ensure the country's energy security.