Faro, Portugal, March 2, 2025 (Lusa) - The Portuguese minister of the economy said on Monday that the increase in oil prices "is not good news" and assured that the government will, if necessary, take appropriate measures to keep the economy running.
"It is clear that the increase in oil prices is not good news," said Manuel Castro Almeida, adding that "Portugal is now much better equipped to withstand oil price increases than in the past".
On the sidelines of a meeting in Faro of the Regional Council of the Algarve Development Coordination Commission (CCDR), the government official recalled that 70% of the electricity consumed in Portugal comes from renewable sources and is therefore "less dependent on oil, which is a competitive advantage for Portugal".
For Manuel Castro Almeida, the government "will always be vigilant and its obligation is to be vigilant in order to take appropriate measures at all times to ensure that the economy functions, that people have decent living conditions and that public finances are balanced".
Brent oil prices rose today following the US and Israeli attack on Iran and its repercussions in the Middle East.
The suspension of traffic in the Strait of Hormuz - which separates Iran in the north from the Emirates and Oman in the south, just 30 kilometres away - will have an impact on oil prices, which could exceed US$100 per barrel, but the effects depend on the duration of the closure and whether the conflict spreads, analysts say.
"We have significant reserves that I hope will last beyond the time that is announced and the time that this war will last. At the moment, there is nothing to fear in that regard," said the minister of the economy and territorial cohesion.
Castro Almeida ruled out the possibility, at this time, of a budget revision caused by the impact of bad weather on the economy and the consequences of a possible increase in fuel prices.
"At this point, it is too early to take a position on this. If necessary, it will be done; if not necessary, it will not be done. At this point, there are no indicators that would allow us to make a decision now, but it will be reassessed later, and later we will see whether or not it is necessary," he said.
The European Commission had also assured today that it had no "immediate concerns" about the security of energy supplies to the European Union (EU), despite the impact of the conflict in the Middle East on the Strait of Hormuz, through which 20% of the world's oil passes.
Israel and the United States launched a military attack against Iran on Saturday to "eliminate imminent threats from the Iranian regime," and Tehran responded with missiles and drones against US bases in the region and Israeli targets.
US President Donald Trump said the operation aims to "eliminate imminent threats" from Iran, and Israeli Prime Minister Benjamin Netanyahu justified the joint action against what he called an "existential threat".
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