— The longer the war lasts, the greater the economic consequences will be, warned German Vice-Chancellor Lars Klingbeil, commenting on the situation in the Middle East.
The politician admitted that there are clear threats to the economic situation in Germany. — They concern not only our country, but also the international economy and trade, he said.
German Chancellor Friedrich Merz also spoke on the matter. — We are concerned about the development of the energy price situation. We know this has the potential to impact the German economy – Merz said.
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War in the Middle East. Oil prices are rising
Israel and the US started a war with Iran on February 28, killing, among others, the country's supreme leader, Ali Khamenei. Tehran responds by shelling Israel and several Gulf states.
Prices of American West Texas Intermediate (WTI) crude oil exceeded $100 on Sunday. (approx. PLN 369) per barrel for the first time since March 2022. The price of Brent crude oil, which is a global reference point, broke the same level. WTI prices jumped by almost 20 percent on Sunday. in one day, reaching a price of $108. (approx. PLN 398) per barrel. Brent prices increased by 16%. to the level of $107. (approx. PLN 394).
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War in the Middle East. Donald Trump on price increases
The rising costs of raw materials are the result of the closure of the Strait of Hormuz, through which usually 20 percent of gas flows. sea transport of crude oil. Closing the strait prevents the export of this raw material by the Persian Gulf countries. Several countries – Iraq, the United Arab Emirates and Kuwait – have already cut production due to running out of oil storage capacity.
US President Donald Trump addressed the price increase on his Truth social media site, emphasizing that “a short price increase is a very small price to pay.” The leader also assessed that prices would drop quickly “when the Iranian nuclear threat is completely eliminated.”
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