Brussels, July 9, 2026 (Lusa) - Portugal's government views the economic impact of the resurgence of tensions in the Middle East “with concern”, given the latest US and Iranian attacks, acknowledging the “highly uncertain and volatile situation”, particularly with regard to fuel prices.
“This resurgence of tension in the Strait of Hormuz and in the Middle East conflict naturally concerns us. A few weeks ago, when an agreement was signed, we all expected that the conflict would end, that traffic through the Strait of Hormuz would return to normal, and that, as a result, the price of oil might fall to pre-conflict levels, with the same effect on petrol and diesel,” Finance Minister Joaquim Miranda Sarmento said on Thursday.
Speaking to Portuguese journalists in Brussels as he arrived for the Eurogroup meeting, the minister noted: “The situation is highly uncertain, and always very volatile; if we return to a state of conflict and a rise in oil prices, this will naturally have consequences for the economy that we will actively manage.”
“Let us hope that everything can be resolved quickly,” he added.
Noting that Portugal “is monitoring the developments and impacts of this conflict”, Joaquim Miranda Sarmento said that the government would “assess what effects this will have in the coming weeks, particularly on fuel prices, and act accordingly”.
“The 2025 budgetary situation, having turned out better than anticipated, has given us a little leeway, but we must act in accordance with how circumstances develop,” he said, without elaborating.
What is certain is that Portugal has announced that it will benefit from the relaxation of the European Union’s budgetary rules proposed by the European Commission to accommodate energy expenditure – a measure that allows Member States to increase public investment in areas such as energy and energy security without such expenditure affecting compliance with the EU’s deficit and debt rules.
When asked what measures might be included, Joaquim Miranda Sarmento pointed out that “this is a discussion that will now have to take place with the Commission”.
“Our expectation is that, naturally, the support measures that have been decided upon, such as the ISP [fuel tax], support for agricultural diesel, support for diesel fuel for transport companies and passenger transport companies providing public services, meaning they cannot pass on the rise in fuel prices to their customers, and support for fertilisers; we expect all of this to be included in the escape clause,” he explained.
Citing figures from around a month ago on the budgetary impact of the Portuguese measures, published by the European Commission, the minister said the figure was close to 0.2% of gross domestic product if no further measures are adopted.
In mid-June, the government announced that it was drafting legislation to introduce taxes on the windfall profits of energy companies, as announced in May, and that it would subsequently submit it to parliament.
Today, however, Joaquim Miranda Sarmento told journalists in Brussels that the government was still “analysing this possibility”.
“We will make decisions later,” he concluded.
This stance comes as the United States and Iran have intensified their conflict once again, exchanging military attacks that have heightened concerns over security in the Strait of Hormuz, a route through which around a fifth of the world’s oil trade passes.
The escalation of tensions is heightening awareness of the need to safeguard energy supplies and strengthen the global economy, particularly amid rising oil prices and evolving market conditions.
ANE/ADB // ADB.
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