German economy minister Katherina Reiche (CDU) warned about the economic fallout from the war in Iran. In an interview with the “Handelsblatt” (Friday issue), she said:
“From an economic point of view, a lot will depend on how long the Strait of Hormuz remains impassable. Such exogenous shocks create uncertainty, and uncertainty is never good for the economy”.
Reiche added that reliable predictions about the impact on the German economy cannot yet be made because the situation in Iran is highly dynamic.
She had announced on Wednesday that a portion of the state oil reserve would be released to help curb global price rises and to assist Asian countries. Germany, however, does not have a state gas reserve, and price hikes are also noticeable in that sector.
Reiche said the government will likely need to adjust gas policy. “We are carefully evaluating the most suitable crisis tool for gas supply” she explained. “The arguments for implementing such a crisis instrument are growing rapidly”.
