Azernews.Az

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.