BERLIN: Germany has announced a temporary tax cut on petroleum products to ease the impact of the ongoing energy crisis triggered by the Iran conflict.
German Chancellor Friedrich Marsch said taxes on petrol and diesel will be reduced by around 17 euro cents per litre for a period of two months to provide relief to consumers.
Meanwhile, the German Ministry of Economics has warned that the economic effects of the Iran war are likely to persist throughout 2026.
The move comes amid a sharp rise in global oil prices following the breakdown of negotiations between the United States and Iran and the announcement of a blockade.
According to international market data, crude oil prices jumped by around 9% after the failed talks, driven by fears of supply disruptions and escalating regional tensions.
Brent crude has climbed to approximately $103 per barrel, while US benchmark West Texas Intermediate has crossed $105 per barrel. The United Arab Emirates’ Murban crude is also trading near $98 per barrel.
Analysts warn that if tensions continue to escalate, oil prices could rise further, intensifying inflationary pressures across global economies.
