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Travel insurance for Turkey has jumped almost 50 per cent in just a year, according to new data

Five European and Mediterranean destinations including some hotspots much loved by British tourists have been named as having seen big rises in insurance costs, directly caused by the Middle East crisis. Travel insurance for Turkey has jumped 46% in just a year, according to new data analysing 5,000 policies across popular destinations near conflict zones.

There is no sign of the Middle East conflict calming down – today Iran fired ballistic missiles and drones towards Bahrain and Kuwait, Bahrain’s government said, adding that they were intercepted.

Bahrain’s government called on Tehran to immediately cease attacks on Gulf neighbours that it deemed a “serious escalation”. Iran’s Foreign Ministry said the US early Saturday attacked surveillance facilities on Qeshm Island and near Sirik that it said were used to protect borders and “ensure the security of navigation in international waters”.

The latest exchange of fire came as the Trump administration pressed Iran to make a deal to end the war that has strained the global economy and threatened a hunger crisis in some of the world’s most vulnerable countries.

The US military earlier said it shot down several Iranian missiles and drones launched towards the Strait of Hormuz and Gulf Arab allies, and struck some of the Islamic Republic’s coastal surveillance radar sites in response.

It has had a big impact on the region with some popular destinations seeing big rises in premiums. Quotezone travel insurance expert Helen Rolph warned travellers not to assume last year’s prices still apply and urges holidaymakers to compare policies carefully, buy cover as soon as they book, and check Foreign Office advice before travelling.

Industry experts compared 5,000 travel insurance premiums across five popular tourist destinations close to conflict zones, revealing which countries have seen the biggest price increases over the past year.

Prices in Turkey have been affected the most despite it traditionally being considered one of the most popular and cost-effective destinations for UK holidaymakers over recent years.

Standard travel insurance premiums to the country have jumped from £40.56 in early 2025 to £59.19 just a year later – a rise of 46% or almost £20 per trip – which may be due to the fact it shares a border with Iran.

Holidaymakers travelling to Bulgaria are also seeing a sharp rise with prices up 19%, possibly down to its proximity to Ukraine.

Premiums for Cyprus have increased by 6%, Egypt by 4% and Poland by 8%. To gather the data, popular holiday destinations for British tourists were cross-referenced with countries geographically close to conflict zones, namely Ukraine and Iran, creating a dataset of major holiday hotspots in relative proximity to areas of geopolitical tension.

Insurers regularly reassess risk when global tensions rise, particularly in destinations close to areas where travel complications might become more likely.

Destinations situated close to areas experiencing heightened tensions – such as Iran and Ukraine – could see premiums shift as insurers reassess the likelihood of travel disruption, delays or emergency evacuation should issues escalate.

Helen Rolph, travel insurance expert at Quotezone.co.uk said: “Travel insurance prices change constantly as insurers respond to global events, the number of claims made and healthcare costs.

“Even if a destination remains popular despite its proximity to ongoing conflict, premiums can rise when the wider region becomes more uncertain.

“Travellers and holidaymakers shouldn’t assume last year’s prices will still apply and make sure they’re comparing policies carefully rather than opting for the cheapest option, as cover can vary significantly.

“It’s also sensible to arrange insurance as soon as a trip is booked, check government travel advice before departure, and ensure any medical conditions are fully declared.

“Travel disruption insurance can also be useful as it covers a wider range of issues while travelling but it’s important to remember that travel insurance won’t provide cover if the foreign office advises against travel to that region and most travel insurance policies won’t cover war related incidents. It’s crucial for holidaymakers to check what is and isn’t covered on their policy and add any extras or specialised cover they might need.”

Travel Insurance Premiums

Country // Average 2025 // Average 2026 // Average Price Change // % Change

Turkey £40.56 £59.19 £18.63 46%

Bulgaria £32.70 £38.82 £6.11 19%

Poland £10.50 £11.32 £0.82 8%

Cyprus £43.21 £45.80 £2.59 6%

Egypt £68.52 £71.30 £2.78 4%

New research from the European Central Bank suggests that the economic impact of the Iran war may be affecting euro zone consumers more deeply and rapidly than previous geopolitical crises, raising concerns about inflation, slowing growth, and long term economic uncertainty across Europe.

According to ECB economists, European consumers appear to be reacting more sensitively to rising prices and economic instability because many households are still psychologically affected by the financial stress caused by the Russia Ukraine war and the energy crisis that followed in 2022.

The latest conflict involving Iran, triggered after United States and Israeli airstrikes earlier this year, caused major disruptions to global energy supplies and reignited fears of another inflation shock throughout Europe.

ECB researchers found that consumers quickly became more attentive to price increases even while inflation remained close to the central bank’s 2 percent target. Economists believe this reaction reflects growing public anxiety over repeated geopolitical and economic disruptions.

Why It Matters

The findings raise serious concerns for Europe’s economic recovery because consumer confidence plays a critical role in spending, investment, and overall growth.

When households become highly sensitive to inflation and uncertainty, they often reduce spending, delay purchases, and increase savings out of caution. This behavior can weaken economic activity and slow recovery across key sectors including retail, manufacturing, housing, and services.

ECB researchers warned that Europe may now face the risk of a more persistent stagflation environment, where inflation remains elevated while economic growth slows simultaneously.

The Iran war also exposed Europe’s continuing vulnerability to global energy shocks. Despite efforts to reduce dependence on Russian energy after the Ukraine conflict, Europe remains heavily exposed to disruptions in global oil and gas markets.

Although oil prices have recently eased amid hopes for diplomacy, they surged sharply earlier this year during the height of the Iran conflict, intensifying inflationary pressure across the euro zone.

Key Stakeholders

Several major stakeholders are directly affected by the growing economic uncertainty surrounding the Iran war and Europe’s inflation outlook.

European Central Bank

The ECB faces increasing pressure to balance inflation control with economic stability. Policymakers are now widely expected to continue raising interest rates in an effort to prevent inflation expectations from becoming entrenched among consumers and businesses.

European Consumers

Households across Europe remain at the center of the crisis. Rising living costs, energy prices, and borrowing expenses continue placing pressure on disposable incomes and consumer confidence.

Businesses and Industries

European businesses, particularly energy intensive industries, face higher operating costs and weaker consumer demand. Continued uncertainty may reduce investment activity and slow hiring across multiple sectors.

Energy Markets

Global oil and gas markets remain highly sensitive to developments in the Middle East. Any renewed escalation involving Iran could rapidly push energy prices higher again, directly affecting inflation and economic stability in Europe.

Governments Across Europe

European governments may face growing political pressure if inflation remains persistent while economic growth weakens. Policymakers could be forced to increase public spending or introduce additional support measures for households and industries.

Future Outlook

The coming months are likely to become a critical period for the euro zone economy as European policymakers attempt to manage the combined effects of geopolitical instability, inflation concerns, and slowing growth.

Much will depend on whether tensions in the Middle East continue easing or whether new disruptions emerge in global energy markets. A stable diplomatic environment could help reduce inflationary pressure and restore consumer confidence gradually.

However, ECB researchers warn that the psychological impact of repeated crises may continue shaping consumer behavior long after energy prices stabilize. Many Europeans who experienced financial stress during the Ukraine war now appear quicker to react to fears of inflation and economic instability.

The ECB is therefore expected to maintain a cautious but firm monetary stance in the near term, with additional interest rate increases remaining highly likely.

If inflation remains elevated while economic growth weakens, Europe could face a prolonged period of economic stagnation combined with reduced consumer spending and higher borrowing costs.

The situation highlights how modern geopolitical conflicts increasingly influence not only energy and security policy but also consumer psychology, market behavior, and long term economic confidence across global economies.

With information from Reuters.

At Besiktas Park on Wednesday, Emery will stand on the touchline for his sixth Europa League final in 12 years.

He lost the 2019 final to Chelsea while at Arsenal, where his 18-month reign was seen as a failure.

But he has more triumphs in the competition than any other manager; three with Sevilla – in 2014, 2015 and 2016 – when they beat Liverpool – before a penalty shootout victory over Manchester United with Villarreal in 2021.

Emery, though, insists that will mean nothing come kick-off against their Bundesliga rivals.

“I am not a king in this competition,” he said. “I am now here with Aston Villa in a new chapter. Everything I did is done and of course it’s there in that moment but with it I am not winning.

“I need to win [in Turkey] with the players we have now, with Villa now. So now it’s a new way, a new moment, and hopefully a new era.

“If you are not respecting the opponent, you are closer to losing. If you are not respecting Europe, like we did during the process, we are not here. This is the strong mentality we had before.

“We have a huge challenge, a huge challenge. Are we thinking about the next party on Friday? No, no.”

The former Paris St Germain boss has managed 115 games in the Europa League, winning 71, and his best win rate in the competition is his 85.7% with Villa.

Those wins are a competition record. And since the start of 2023-24, no side has won more European matches than Villa’s tally of 26.

Emery – bizarrely overlooked in the Premier League’s Manager of the Season nominations – spoke to his players on Saturday morning, a debrief following Friday’s 4-2 win over Liverpool which sealed Champions League qualification.

He also reminded them about the journey the club has been on since he replaced Steven Gerrard in late 2022 – a Europa Conference League semi-final, a Champions League quarter-final and two top-five finishes.

Emery has needed a way with words at times, refusing to lay into his players at half-time during the abject defeat by Tottenham at the start of the month.

It was something the squad appreciated, a fatherly touch of reminding them of what they have achieved together.