by Alimat Aliyeva
German Chancellor Friedrich Merz has announced that Germany will
temporarily reduce taxes on gasoline and diesel in an effort to
support households and businesses affected by rising energy costs
linked to instability in the Middle East, AzerNEWS
reports.
Speaking to reporters after talks with members of his CDU party
and coalition partners, Merz said: “We will reduce the tax on
diesel fuel and gasoline by about 17 euro cents (approximately
$0.20) per liter for a period of two months.”
The decision comes amid continued volatility in global energy
markets, which has been driven by escalating tensions in the Middle
East region. Several economies across Europe have faced renewed
pressure due to fluctuations in fuel and transportation costs.
Earlier developments in the region included military operations
involving United States and Israel, which carried out airstrikes on
multiple targets in Iran. In response, Iran launched missile
strikes against Israeli territory and reportedly targeted U.S.
military installations in parts of the Gulf region.
Subsequently, a short-term ceasefire agreement was reached in
early April 2026 between Iran, the United States, and their
partners, temporarily reducing hostilities. However, later
negotiations held in Islamabad, mediated by Pakistan, failed to
produce a lasting settlement.
Analysts note that even brief interruptions in regional
stability tend to have an outsized impact on global oil prices,
highlighting how geopolitical tensions continue to shape energy
policy decisions far beyond the region itself.