ISTANBUL

Experts warn that Switzerland's energy costs are surging, putting pressure on households and affecting the broader economy amid the Middle East conflict, Swiss Info reported Monday.

Diesel in Switzerland has topped CHF 2 ($2.50) per liter for the first time since 2022, petrol has risen over CHF 0.20 ($0.24) since March, while kerosene and heating oil prices have surged sharply following US-Israeli strikes on Iran.

If these prices persist for a full year, additional energy costs for Swiss consumers could total CHF 4.9 billion ($6.1 billion), according to ETH Zurich researcher Cyril Brunner, cited by Swiss Info. This would correspond to roughly CHF 1,200 ($1,500) per household, Brunner noted, adding: "A Switzerland less dependent on fossil energy would be less exposed to this type of geopolitical crisis."

Experts also warn of wider economic repercussions. BAK Economics estimates that inflation for 2026, initially forecast at 0.3%, could reach 0.6%. "The increase will remain well below levels recorded abroad, but the change will still be significant by Swiss standards, particularly due to rising energy and import costs," it said, according to Swiss Info.

On March 2, Iran announced restrictions on navigation in the Strait of Hormuz, a key transit route for oil tankers, threatening to attack any vessels attempting to pass without coordination. About 20 million barrels of oil transit the strait daily, and its effective closure has driven up oil prices and shipping and insurance costs, triggering global economic concerns.

The entire region has been on alert since the US and Israel launched an air offensive on Iran on Feb. 28, killing over 1,340 people so far, including then-Supreme Leader Ali Khamenei.

Tehran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets.