German Chancellor Merz says the best way to combat high prices is to end the war in Iran; cannot cover all the additional costs from the federal budget

Chancellor Merz's statement linking high prices in Germany to the ongoing conflict in Iran highlights the geopolitical tensions affecting energy markets and inflationary pressures. This suggests that a resolution could alleviate some costs, but until then, the government's inability to fully absorb these expenses may sustain inflationary trends. Expect energy assets, particularly oil, to respond to any developments regarding the Iran situation.