According to Kristersson, it is difficult to predict how the war in the Middle East will affect the Swedish economy.
But we have the economic muscle in Sweden to act if this has a dramatic impact on the Swedish economy, he says at a press conference.
The government is working on three different scenarios. One is a regime change in Iran that leads to the end of the country's aggressive stance.
“We are prepared”
If that happens, we will see a normalization of oil exports from the Gulf countries, says Kristersson.
It would also open up oil exports from Iran, he says.
A second scenario is that the regime hardens and continues to destabilize the Middle East. A third is a regime collapse that could develop into civil war in Iran.
Then there will be very unpredictable consequences. An important factor for the economic impact on Sweden is how prolonged the phase of hostilities in the Middle East will be, says Kristersson and continues:
My message is that we should not be afraid of what is happening now, because we are prepared.
Finance Minister Elisabeth Svantesson (M) says at the press conference that a main scenario is that the war will end within a couple of weeks, but that "you should always prepare for the worst."
"If there's one thing we've learned in recent years, it's that a lot can happen," she says.
Opens for extended electricity support
If the situation escalates, the price of oil could rise, with the risk of higher inflation in Sweden and an impact on Swedish GDP.
Then one can imagine tighter monetary policy, says Svantesson.
She believes that what mainly worries Swedish households financially is the electricity bill.
"We will be able to stimulate the economy if needed, and support households, for example through increased electricity support," she says.
