OREANDA-NEWS The escalation of the situation in the Middle East and the blockade of the Strait of Hormuz have led to a sharp increase in hydrocarbon prices. According to Izvestia, citing the European Central Bank, the average inflation rate in the European Union could reach 2.6% by the end of 2026, primarily due to the rise in oil and gas prices.

The regulator warns that "unlimited and comprehensive subsidies will only accelerate the spread of energy inflation to other sectors of the economy." At the same time, financial reserves for a large-scale support program are now significantly lower than in 2022.

The EU's spending on fossil fuels has already increased by 14 billion euros. Gas prices have jumped by 70 percent, and oil prices have increased by 60 percent. Economists believe that the European Union can only afford targeted short-term measures. If the trend continues, the EU's public debt (which has already exceeded 82% of GDP, reaching 15.3 trillion euros) will continue to grow, and inflation will accelerate.

Earlier, it was reported that the United States would not be able to unblock the Strait of Hormuz militarily, as it is not possible under the current circumstances.