Fuel prices are expected to rise sharply as a result of escalating tensions in the Middle East, chairman of the association of petrol station owners Savvas Prokopiou said on Friday.

“Unfortunately, an increase is expected […] and this time it will be steeper, as the price of crude oil rose by $10 per barrel within just two days,” Prokopiou told the Cyprus News Agency.

He explained that it typically takes “ten days to a fortnight from the moment global barrel prices rise” for local prices to be affected, although the energy ministry and import companies “know best when shipments arrive and when price increases are applied.”

“We simply follow the pricing,” he added.

Economist Tasos Yiasemides said the standoff between Iran and Israel has triggered “a new wave of volatility in global markets, with oil prices among the first to react.”

This, he said, comes at a time when oil prices had recently dropped and oil-producing countries had announced plans to increase production and supply.

“The intensity and scale of the impact will depend on how long the confrontation lasts and the extent of the military operations,” Yiasemides said.

He also noted that “fears of an unpredictable conflict in the region are driving up demand for safe-haven assets – with gold leading the way.”

Gold markets, particularly in the Middle East and Asia, have seen significant strengthening, he said, as investors seek protection against potential political instability and currency fluctuations.