BRUSSELS/LONDON/PARIS/NICOSIA - A top official of the European Union (EU) warned on Monday that a prolonged conflict in the Middle East could spill over into the global economy.

Ahead of a Eurogroup meeting, European Commissioner for Economy and Productivity Valdis Dombrovskis said that the economic impact would remain limited if the conflict were contained quickly.

However, a more prolonged crisis, especially one disrupting shipping through the Strait of Hormuz and causing destruction in the energy infrastructure of the Gulf, could deliver "substantial stagflationary shock on the global and European economy," he said.

"Therefore, it's important to work to de-escalate the conflict as soon as possible," Dombrovskis added.

Dombrovskis noted that the European Commission was maintaining close contact with Gulf countries and stepping up economic outreach in support of a diplomatic solution to the Middle East conflict. 

EU calls for de-escalation

EU leaders said on Monday that the bloc was ready to play a role in easing tensions in the Middle East, calling for de-escalation and a return to negotiations.

The EU stands ready to "contribute in every possible way to help de-escalate the situation and facilitate the return to the negotiating table," European Council President Antonio Costa and European Commission President Ursula von der Leyen said in a statement following a video conference with leaders from the region.

UK urges de-escalation

British Prime Minister Keir Starmer said on Monday that efforts must be made to de-escalate tensions surrounding Iran, warning that a prolonged conflict could have negative economic consequences, British media reported.

According to a video posted by The Guardian on social media, Starmer made the remarks while visiting a community center in London, stressing the need to ease the situation.

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Macron calls for ceasefire in Lebanon

French President Emmanuel Macron on Monday urged de-escalation amid rising tensions in the Middle East, particularly calling for a ceasefire in Lebanon.

During a visit to Cyprus, where he met with Cypriot President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis, Macron expressed solidarity with the island country.

He said that the defense of Cyprus is "obviously a crucial issue" not only for the country itself but also for neighbors and the European Union.