The DIHK Head of Foreign Trade, Volker Treier, told the "Rheinische Post", it was "also a relief for the economy that the warring parties were able to agree on a ceasefire." This has slightly increased hopes for falling energy prices and functioning supply chains.

"Nevertheless, the situation remains very tense," said Treier. He referred to an ongoing survey of the German Chambers of Commerce Abroad (AHKs) worldwide, which the DIHK has preliminarily evaluated: According to the survey, around 85 per cent of companies connected to Germany are directly or indirectly affected by the impact of the war in the Middle East.

Cost Levels Will Increase Long-Term

Volker Treier clarified: "Even if the Strait of Hormuz is reopened and remains operational, disruptions in transport routes and damage to energy infrastructure will have long-lasting effects." They burden international logistics chains and thus pose a significant problem for the German economy. "Companies need to prepare for long-term higher cost levels," warned the DIHK Head of Foreign Trade.

Relieving the Broader Economy

For a country like Germany, this presents a massive challenge. Even before this crisis, energy costs in this country were among the highest worldwide. Add to this dramatically increased labour costs and record burdens from levies, taxes, and bureaucracy. Treier emphasised: "This is why we now expect the Federal Government not only to respond pragmatically to the crisis but finally to undertake structural reforms that will provide relief for our economy. At the DIHK, we are always willing to engage in discussions and, above all, to work on joint solutions."