Monika Schnitzer, the chair of the Expert Council for assessing overall economic development, does not anticipate that a ceasefire in the Iran conflict will result in rapid price drops at gas stations. Speaking to the “Neue Osnabrücker Zeitung” she stated that while prices tend to increase quickly, decreases usually take several days to materialize. However, she does believe that the falling oil prices will eventually be passed on to consumers.
Nonetheless, she questioned whether this easing of tension will be long-lasting, noting that the current situation remains “very volatile”. According to Schnitzer, the determining factor is whether the two-week ceasefire is utilized to achieve a permanent end to the conflict. Even if this is accomplished, she warned that it will take weeks for the supply chains via the Strait of Hormuz to become fully functional again, meaning the German economy is already suffering considerable damage.
