Merz says conflict around Iran has cost Europe more than €100 billion

German Chancellor Friedrich Merz said that the economic consequences of the conflict around Iran have already cost Europe more than €100 billion over the past eight months, and therefore called on the parties to settle the situation diplomatically.

"We are using many channels for coordination and for our diplomatic efforts so that this conflict ends as soon as possible. It has a large-scale impact on Europe. Because of this conflict we are already bearing enormous costs: due to higher energy prices alone, Europe's losses over the past eight months have exceeded €100 billion," Merz told journalists during a visit to the Republic of Korea.

That, according to him, is exactly how much businesses and consumers in Europe have overpaid because the conflict led to rising energy prices. "That is why we also have a direct economic interest in this confrontation ending as quickly as possible. I can only say to all parties to the conflict: this crisis cannot be resolved militarily, it must be resolved diplomatically, through negotiations," the German chancellor asserted.

His words, as Merz explained, apply to Israel as well, and to its reelected or possibly new government. "This conflict has no military solution," the chancellor repeated, adding that Germany is ready to assist the peace process, using its diplomatic contacts in the Middle East.

The United States and Israel launched a military operation against Iran on February 28. In June, Washington and Tehran signed a memorandum of understanding providing for an immediate cessation of hostilities on all fronts, including in Lebanon. However, on the night of July 8, the United States resumed large-scale strikes on Iran, accusing it of violating the terms of the agreements reached with regard to the Strait of Hormuz. Approximately 25% of the world's oil trade volumes and about 20% of liquefied natural gas are transported through it. The US administration then effectively signaled an end to the use of large-scale military force against Iran and a shift toward an attempt to strangle it economically through sanctions.

Source: TASS