ECB: Middle East conflict impact will be limited on energy costs

Isabel Schnabel, a member of the Executive Board of the European Central Bank, said that the conflict in the Middle East is likely to have a limited impact on global energy prices provided that hostilities do not expand further.

Schnabel continued in a lecture, “Our preliminary analysis at this stage shows that since Israel is ultimately relatively small, and as long as the conflict remains under control, the impact on energy prices should be relatively limited.”

She continued, “If the scope of the conflict expands, of course, especially if Iran enters, the situation may change.”