The Repercussions of Rising Oil Prices on the European Economy in Light of the 2026 Middle East Crisis

Abstract

This study aimed to investigate the economic repercussions of rising oil prices on the European economy amid the 2026 Middle East crisis, along with its broader regional and international political, economic, and security implications. Utilizing a descriptive-analytical approach, the study examined the nature of the crisis and analyzed its direct and indirect impacts. The findings revealed that the ongoing conflict triggered an energy price shock, which negatively affected inflation rates, threatened European energy security, and caused severe disruptions in supply chains across critical maritime passages. The study recommends strengthening European diplomatic efforts to contain the crisis, accelerating the transition toward alternative energy sources, and diversifying energy supply routes to reduce economic vulnerability to geopolitical shocks.