Cyprus unveils support package as Iran war drives fuel prices up

Cyprus on Thursday unveiled a €200-million support package to shield households and businesses from the economic fallout of the Iran war, which has driven a spike in fuel prices.

The package combines tax relief, subsidies and targeted support for vulnerable sectors such as tourism and agriculture.

In a televised address, President Nikos Christodoulides said the European Union member's "strong and resilient" economy allows for targeted intervention.

Cyprus is heavily dependent on imported energy, and the move is aimed at cushioning the war's impact, especially on travel and tourism.

The eight temporary measures include VAT reductions on household electricity bills for a year, cuts to fuel excise duties until June and subsidies for farmers in April and May.

Christodoulides called the measures "fully costed and within fiscal surplus limits", and said further interventions remain on standby depending on how long the war lasts.

"We hope it ends quickly, but we are ready if it does not," he said.

The government has warned it would intensify consumer protection to prevent profiteering.

Christodoulides on Thursday also underlined that Cyprus is not involved in military operations.

A British Royal Air Force base on the south coast of Cyprus was hit by a drone in the early days of the war.

Under the treaty that established independence for Cyprus in 1960, Britain retained 99 square miles of the island that is sovereign British territory