Dimitar Radev, a member of the Governing Council of the European Central Bank, warned yesterday that the energy crisis linked to the ongoing conflict in the Middle East could spread to other sectors if it persists.

According to Bloomberg News, Radev—who also serves as Governor of the Bulgarian National Bank—said that prolonged external shocks rarely remain confined to a single sector. “A crisis that begins in the energy sector can gradually extend to the broader economy,” he noted.

Speaking at an event in Sofia on Friday, he added that such developments have clear implications for monetary conditions and pose direct challenges for businesses.

Several policymakers at the European Central Bank have already expressed concern that these pressures could contribute to a slowdown in economic growth across Europe.