Germany warns Iran war is ‘serious threat to global economy’

Germany on Monday warned of the economic consequences of the war in Iran and a potential blockade of the Strait of Hormuz ahead of a meeting of G7 finance ministers in Paris.

The war is a “serious threat to the global economy” and is causing massive damage to economic development, German Vice Chancellor and Finance Minister Lars Klingbeil said before departing for the talks.

Everything must be done to “permanently end” the war, stabilize the region and ensure free sea lanes, and “In doing so, our path as Europeans remains clear: We prioritize cooperation over confrontation,” the German Press Agency dpa quoted him as saying.

At the G7 finance ministers’ meeting, which begins Monday, participants are expected to focus on the economic impact of the Middle East conflict and possible consequences for global trade. The Strait of Hormuz remains one of the world’s most important shipping routes for oil and gas trade.

Klingbeil said the current crises underscore the importance of Germany and Europe becoming “more independent and resilient,” particularly regarding raw materials, energy and supply chains.

He added that discussions in Paris would also include finance ministers from Brazil, India, South Korea, and Kenya.