In a CNBC interview, Greece’s Ministry of National Economy and Finance, represented by Minister Kyriakos Pierrakakis in his capacity as Eurogroup President, warned that the disruption of the Strait of Hormuz could amount to the largest energy crisis on record if it is not resolved quickly. He argued that market effects could intensify in the coming period and that even a fast resolution would not restore the prior balance, with supply chains needing at least two months to recover and at lower levels, and with a persistent risk premium likely to be priced into energy. He cited oil supply losses of around 13 million barrels per day compared with roughly 10 million barrels per day in the 1970s shocks, and described a steeper natural gas disruption than in 2022, implying an annualised loss of around 110 billion cubic metres versus a cumulative 75 billion cubic metres then (from 155 to 80 billion cubic metres). The interview also highlighted that roughly one third of fertilisers transit the Strait of Hormuz alongside other commodities, and noted that April could prove more problematic than March given shipping timelines, with cargoes that departed on 28 February expected to arrive by 20 April; around 80 energy assets in the Middle East were described as affected, with one third significantly hit. On Europe, he judged the region less vulnerable than in 2022 due to diversification and infrastructure investment, but noted continued dependence given that 57% of energy is imported, while 43% of electricity generation comes from renewables, with further investment needs in grids, interconnections and storage; he also pointed to lower growth and higher inflation, while stating that stagflation conditions had not yet materialised. On fiscal policy, Pierrakakis argued that the European response should be coordinated with monetary policy while respecting the independence of the European Central Bank (ECB). He referenced the 2022 “toolbox” and the European Commission’s framework that support measures should be temporary, targeted and tailored, focusing on the most vulnerable to avoid counterproductive macroeconomic effects.
Ministry of National Economy and Finance (Greece) 2026-04-15
Greece’s Ministry of National Economy and Finance warns Hormuz disruption could trigger a historic energy shock and urges targeted EU fiscal support aligned with the ECB
Greece’s Ministry of National Economy and Finance, represented by Minister Kyriakos Pierrakakis as Eurogroup President, warned that prolonged disruption of the Strait of Hormuz could trigger the largest energy crisis on record, with oil and gas supply losses exceeding the 1970s and 2022 shocks and a persistent risk premium in energy prices. He noted that Europe remains exposed despite diversification and higher renewables, with potential for lower growth and higher inflation but not stagflation. On fiscal policy, he called for a European response coordinated with monetary policy and aligned with the European Commission’s framework that support measures be temporary, targeted and focused on the most vulnerable.