Iran War Costs Europe Over €100 Billion, Spanish PM Reveals

He warned that the effects of the conflict are being felt far beyond the Middle East, with ordinary citizens facing higher energy prices, rising business costs and growing pressure on household budgets.

According to Sánchez, the economic consequences of war do not remain limited to the countries directly involved in military operations. They can also affect people living thousands of kilometres away.

To help people and businesses cope with the rising costs, the Spanish government has approved a €12 billion support package. The measures aim to ease the financial pressure caused by the conflict, particularly rising fuel prices and costs affecting transport and other economic sectors.

The conflict has raised concerns about global energy supplies because the Middle East is a major region for oil and gas production and transportation. Any disruption to supplies or shipping routes could push energy prices higher.

Higher energy costs can also increase transport charges, industrial production expenses and the prices of everyday goods. Low- and middle-income households are often particularly affected because they spend a large share of their income on essential items.

The economic impact could extend beyond Europe, especially to countries that depend heavily on imported oil. In Pakistan, fluctuations in international energy prices can affect fuel costs, the import bill and inflation.

However, estimating the specific financial impact on Pakistan would require separate economic data.

Sánchez’s warning highlights the wider economic consequences of the conflict. While Spain’s €12 billion support package aims to provide relief, prolonged fighting could put further pressure on governments, businesses and households across Europe and beyond.