Germany Warns of Economic Consequences of Iran War

(MENAFN) Germany sounded an urgent economic warning Monday over the war in Iran and the looming threat of a Strait of Hormuz blockade, as finance leaders from the world's wealthiest nations prepared to convene in Paris for critical G7 discussions.

Speaking before boarding a flight to the French capital, German Vice Chancellor and Finance Minister Lars Klingbeil pulled no punches, describing the conflict as a "serious threat to the global economy" that is inflicting severe damage on global economic development.

Klingbeil stressed the urgent need to do everything possible to "permanently end" the war, stabilize the volatile region, and safeguard the freedom of international sea lanes. German media quoted him as saying: "In doing so, our path as Europeans remains clear: We prioritize cooperation over confrontation."

The Strait of Hormuz — one of the planet's most strategically vital conduits for oil and gas shipments — looms large over the talks. The G7 finance ministers' summit, opening Monday in Paris, is expected to center heavily on the Middle East conflict's mounting economic fallout and its cascading implications for global trade.

Klingbeil further underscored the crisis as a defining moment for European economic sovereignty, arguing that current turmoil makes it imperative for Germany and Europe to become "more independent and resilient" — particularly across raw materials, energy infrastructure, and supply chain networks.

Monday's gathering will extend beyond the traditional G7 bloc, with finance ministers from Brazil, India, South Korea, and Kenya also joining the table in Paris.

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