Germany warns economic recovery under threat from Iran war

"Katherina Reiche cited estimates from economic institutes of around 34.5 billion euros worth of damage to Europe's top economy due to high energy prices, and, of course, inflation if the war were to continue."

"The fragile recovery of Germany's economy is under stress right now, with a scenario in which Brent crude oil costs $150 a barrel costing Germany and its energy-intensive industries $80 billion over two years."

"We don't see any scarcities in terms of volume. But if the conflict doesn't end, we see this probably later, (in) April or May."

Germany's economy minister warned of impending fuel shortages and economic damages amounting to 34.5 billion euros due to high energy prices and inflation from the Middle East war. The fragile recovery of Germany's economy is under stress, with a potential cost of $80 billion over two years if Brent crude oil reaches $150 a barrel. The government had hoped for a 1% growth in 2026, but rising costs and the blockage of the Strait of Hormuz threaten this outlook. Reiche indicated that shortages could arise by April or May if the conflict persists.

Read at The Local Germany