Monika Schnitzer, the economist from Munich, warns that the conflict with Iran is likely to raise prices across the board. She told the Funke media group’s newspapers that consumers will feel the impact most immediately at the gasoline pump, through higher heating costs, and indirectly in pricier food and services. “The uncertainty can also stir turbulence in financial markets and weigh on investment” she added.
Schnitzer, who chairs the Expert Council for assessing the overall economic development, cautioned that as long as the fighting remains limited, the effects should be noticeable yet controllable. “Prolonged escalation, however, could significantly burden inflation and growth” she said.
The tightening of shipping lanes in the Strait of Hormuz-through which roughly 20 percent of the world’s oil passes-has pushed oil prices up. This rise translates into higher costs for transport, production and logistics. Energy‑intensive sectors such as chemicals, aviation and manufacturing, in particular, are now under pressure as a result.