ISTANBUL

Spain is preparing a package of targeted tax measures to mitigate the financial effect of the escalating war in the Middle East, Economy, Trade, and Business Minister Carlos Cuerpo said Thursday.

Speaking after a meeting with major trade unions and employer representatives, Cuerpo said the government wants to approve a series of fiscal measures “in the coming days and as quickly as possible,” though specific instruments are still being finalized, the El Pais newspaper reported.

Cuerpo said initial measures will primarily support sectors most affected by rising fuel costs, especially agriculture and road transport.

“The aid will be very targeted,” he said, emphasizing that the government does not yet see broader consequences for Spain’s overall economy or employment levels.

Madrid is also considering social measures similar to those introduced following Russia’s invasion of Ukraine, including protections for vulnerable households. Among the options being examined are preventing the suspension of basic utilities for struggling families and offering tax relief on electricity bills.

But the government appears reluctant to repeat the broad fuel subsidy implemented during the Ukraine war, which temporarily reduced prices at the pump by €0.20 per liter.

Cuerpo described the subsidy as “one of the measures that is least advisable,” noting that its effectiveness had been widely criticized.

Global oil prices have surged following US strikes on Iran, with Brent crude rising from around $60 to nearly $120 per barrel. The increase has already translated into higher pump prices in Spain, with gasoline rising about 10% and diesel roughly 20%, according to government estimates.