Italy ready to mitigate economic impact of Middle east crisis, says Antonio Tajani

While looking up to the current scenario, Italy has recently announced that it will mitigate huge economic impact of the Iran crisis.

Italian foreign minister Antonio Tajani said on Thursday, March 5, that Italy is ready to protect its economy and households from the fallout of the Middle East crisis and is finalizing ‌measures to support exporters as energy prices rise and shipping routes come under strain.

While speaking to parliament, Tajani warned that tensions around the Strait of Hormuz, a vital passage for global energy supplies, were already having visible economic consequences, and now Oil and gas prices have surged, and insurance premiums on maritime routes have risen.

"Our priority is to protect Italy's economic fabric and households’ purchasing power," Tajani told lawmakers, adding that the government was working with state agencies on support for companies hit by the crisis.

Tajani stressed that the consequences could extend beyond energy markets, weighing on the prices of raw materials as well as wheat and cereals.

"If the price of bread rises, social tensions can intensify and new sources of instability can emerge."

Italy was doing its part by supporting partners across the wider Mediterranean region, including through the Mattei Plan, Rome's flagship initiative aimed at strengthening cooperation with countries in Africa and the Middle East, he added.

Rome would assess whether to step up that commitment to help countries most exposed to potential rises in cereal prices, with the aim of preserving stability in the Mediterranean.

Tajani also underlined the strategic importance of the Gulf region for Italy's economy and crucial for exports.

The Italian minister said around 40% of global maritime trade passes through the Suez Canal and the Red Sea, which is the most important economic trade hub.

Previously, Italy's government announced it would provide aid, including an air defence ‌system, to Gulf nations that have requested help with equipment in the face of Iranian air strikes, two sources said on Wednesday.

Attacks by Israeli and U.S. forces against Iran have prompted Tehran to launch retaliatory strikes on ports, cities and oil facilities throughout the Gulf, a vital energy-producing region.

Italy is not particularly reliant on energy supplies from the Gulf, but its energy minister said on Wednesday the country could reactivate some coal-fired power plants if the conflict leads to an energy crisis.