Armenia’s economy is suffering losses due to the war in Iran, Economy Minister Gevorg Papoyan said during a session of the National Assembly’s Standing Committee on Economic Affairs, commenting on potential economic risks.

According to the minister, the government is currently assessing the situation and its possible consequences, Armenpress reported.

“These days, we are evaluating those risks. We hope the conflict will be short-term. We also hope that our strategic partner and friendly countries that are now in conflict will end it soon. In that case, we believe the damage will be as limited as possible,” Papoyan said.

He noted that economic damage is already visible, particularly through rising prices for certain goods.

“First, we see certain inflationary risks. Second, Armenia receives raw materials needed for organizing some production processes, and we see that inflationary risks may also arise there,” the minister added.

Papoyan emphasized that Armenia has significant trade turnover with Iran, both in imports and exports, and the current situation cannot have a positive impact in the long term.

“However, if we follow the statements of political leaders at the highest level, there seems to be hope that the conflict will end in the near future. In that case, we believe we should not expect very large negative outcomes,” he said.

On February 28, Israel and the U.S. carried out airstrikes against Iran, killing Iran’s Supreme Leader Ayatollah Ali Khamenei. Iran later launched retaliatory strikes against Israel and Gulf countries hosting U.S. military bases.