German Economy Minister Katherina Reiche (CDU) warned that the ongoing war in Iran could have significant economic repercussions. In an interview with ”Handelsblatt” (Fri‑day edition) she said, “From an economic standpoint, much will depend on how long the Strait of Hormuz remains impassable”. She added that such external shocks create uncertainty, which is never favourable for the economy.
Reiche made it clear that reliable assessments of the impact on the German economy are not yet possible. “The situation in Iran is highly dynamic” she explained.
Earlier this week, Reiche announced that a portion of Germany’s state oil reserve would be released to help ease global price pressures, especially for Asian markets. However, Germany does not maintain a state gas reserve, and price rises in the gas market remain a concern.
Looking ahead, Reiche said that Germany will likely make adjustments to gas policy. “We are carefully evaluating which crisis instrument would be appropriate for gas supply” she noted. “The arguments for such an instrument are growing rapidly”.