Germany Warns of Economic Risks from Iran Conflict, Hormuz Disruption

(MENAFN) According to reports, Germany has issued a warning over the economic fallout from the ongoing war in Iran, cautioning that it could also trigger wider instability if access to the Strait of Hormuz is disrupted.

German Vice Chancellor and Finance Minister Lars Klingbeil described the conflict as a “serious threat to the global economy” ahead of his departure for discussions in Paris with G7 finance ministers, according to reports.

He also stressed the need for all efforts to be directed toward “permanently end” the war, restore stability in the region, and secure open maritime routes. He added that “In doing so, our path as Europeans remains clear: We prioritize cooperation over confrontation,” according to the same reports.

The upcoming G7 finance meeting, beginning on Monday, is expected to concentrate on the broader economic consequences of the Middle East conflict, along with its potential impact on global trade flows. The Strait of Hormuz continues to be highlighted as a critical artery for global oil and gas transportation.

According to reports, Klingbeil also emphasized that the current crises highlight the need for Germany and Europe to become “more independent and resilient,” especially in relation to raw materials, energy supplies, and global supply chains.

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