Germany Warns of Potential Trade Disruptions Amid Tensions in the Middle East
Germany’s government is cautioning against the potential for trade disruptions in the wake of escalating conflicts between Israel and Iran and the possibility of the Strait of Hormuz being blocked. The country’s coordinator for maritime economy and tourism, Christoph Ploß, emphasized the significance of sea trade and maritime infrastructure for a trading nation like Germany. “Our supply of raw materials and essential goods largely relies on the sea route – particularly in times of crisis” he said.
Ploß also highlighted the need to consider the free and secure movement of trade in the context of security policy. “In a crisis, we are urgently dependent on stable trade routes” he added. The government is closely monitoring the situation in the Middle East and is working with international partners to ensure safe sea routes.
The German Industry and Trade Association (DIHK) has also highlighted the importance of the Strait of Hormuz for the country’s economy. “Germany’s economy is heavily reliant on energy imports, such as oil and LNG and would be particularly affected by the consequences of a blockade” said DIHK’s external trade expert, Melanie Vogelbach. She noted that the strait plays a crucial role in the global energy supply, with around one-fifth of the world’s daily energy consumption being transported through this route.
Energy economist Claudia Kemfert from the German Institute for Economic Research (DIW) has called on Germany to reduce its dependence on oil and gas. “Although the German economy has become more resilient to fossil fuel shocks, its dependence on fossil energies is still too high” she said. Kemfert urged the country to implement the energy transition more consistently, with a focus on electromobility and the energy-efficient renovation of buildings.
The potential impact of a blockade on the Strait of Hormuz would also be felt in Germany, as rising global energy prices would affect both consumers and industry, Kemfert warned. While Germany’s imports do not directly pass through this route, the country is still vulnerable to price fluctuations on the global energy market.