The AFD deputy spoke about the impact of the escalation in the Middle East on the German economy

The war in the Middle East has a direct impact on the European economy, primarily on Germany. Gunnar Lindemann, a deputy from the Alternative for Germany (AfD) party, told Izvestia about this on March 2.

"The blockade of the Strait of Hormuz announced by Iran is already beginning to take effect and is yielding the first results: oil prices are rising rapidly, and in Germany the cost of gasoline at gas stations has increased to 10% in some places," Lindemann said.

According to him, if the conflict continues, oil and fuel prices may rise even more, which will hit households and the entire economy of the country. Increased transportation costs will lead to higher prices for goods and complicate the work of the industry that uses oil for equipment and production. The parliamentarian noted that this creates a risk of bankruptcy for new enterprises and may push companies to shift production outside of Germany.

The MP also drew attention to the passivity of the European Union (EU), stressing that the EU does not take active actions to protect the interests of European countries and residents.

"The EU is no longer active in politics, much less acting in the interests of the people of Europe. Rather, he stands at the edge of the field and watches what is happening, without attempting to defend European interests on his own," Lindemann said.

He added that without the active participation of the EU, the German economy remains particularly vulnerable to external crises related to energy and logistics.

Risk appetite: how the conflict in the Middle East affects the commodity and stock markets

The price of Brent crude oil opened with an increase of 13%

The Qatari state-owned company QatarEnergy stopped production of liquefied natural gas (LNG) on the same day amid strikes against Iran and Tehran's retaliatory actions. Saudi Arabia also shut down its largest domestic oil refinery after the drone strike.

The Reuters news agency reported yesterday that the US and Israeli strikes on Iran have plunged the oil market into the largest crisis in recent decades, and if the conflict does not stop, oil prices will rise sharply. It was noted that the scale of disruptions in the supply of oil and rising prices will depend on the duration of the conflict in Iran.

The Strait of Hormuz in southern Iran, which is used for the passage of oil tankers, was completely closed on February 28 by the Islamic Revolutionary Guard Corps (IRGC). Some major oil companies and leading trading houses have suspended the supply of crude oil and fuel through the Strait of Hormuz amid Israeli and US strikes on Iran. The next day, the IRGC announced that the strait remained open to ships.

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