"Germany should be guided by the assumption that the shock will be due to the price of energy caused the war between the United States of America and Israel against Iran to last, making the economic situation extremely fragile," said German Finance Minister Lars Klingbeil.
He said that at the upcoming meeting of the International Monetary Fund, he will discuss with colleagues from other countries and international organizations the most adequate measures to stabilize the economy and the market, as well as providing targeted support to citizens and businesses that are particularly hard hit, reports Reuters.
"The most effective thing at the moment is intervention in the market. We can see that in other European countries," Klingbeil previously told Zideutsche Zeitung.
If even the finance minister of a strong economy like Germany calls for intervention in the market, which liberal economy countries do not undertake except in cases of a large and unexpected crisis, such as the corona virus epidemic and the war in Ukraine - the big question is what are the true dimensions of this oil shock.
Trump's confession
US President Donald Trump said oil and gas prices could remain high until November's midterm elections, a rare acknowledgment of the potential political fallout from his decision to attack Iran six weeks ago, according to Reuters.
US Energy Secretary Chris Wright said oil prices will remain high and may continue to rise until serious shipping through the Strait of Hormuz is established.
"We will probably see oil prices peak in the next few weeks before they start to fall," Wright said at an economic forum in Washington on Monday, April 13, according to the BBC.
However, as he pointed out, as soon as the conflict ends and the flow of energy sources continues, the pressure will begin to decrease, but it will take some time.
"The longer the conflict lasts, the longer the consequences will last," Wright warned.
Prices in Serbia
The price of diesel at pumps in Serbia increased by 17 dinars, and gasoline by 10 dinars per liter in 40 days, i.e. since the beginning of the war in Iran and the great global energy crisis. "Time" calculated.
On March 23, the Government of Serbia extended the Regulation on limiting the prices of oil derivatives, which will be valid for another 150 days, ie until mid-August. Also, the government changed the regulation on limiting the price of oil derivatives and raised the price of diesel for farmers by two dinars, from 179 to 181 dinars, and then by another three dinars, so that it is now 184 dinars per liter.
The state reduced excise duties on fuel, banned the export of oil and oil derivatives until May 2, and decided to release 40.000 tons of diesel from reserves.
All this means that fuel prices are in the hands of the state. Thus, just as Trump calculates the price due to the elections in his own country, it may happen that Aleksandar Vučić does the same. If he decides that the elections will be held in 2026, he will probably look to lower the price at the pumps as much as possible.
Dizzying stock market
Oil prices fell after signs that the United States and Iran could resume talks. Thus, the price of Brent oil fell by more than 4,3 percent, to the level of about 95 dollars per barrel, as well as American crude oil, which went down by a little less than seven percent, to a little less than 92 dollars per barrel, Trading Economics reported on Tuesday, April 14.
Talks are underway to hold another round of talks before the two-week ceasefire expires, with reports suggesting the talks could be held in Pakistan.
The sides failed to reach an agreement after prolonged talks over the weekend, prompting US President Donald Trump to announce a blockade of Iranian oil supplies.
Pandemic decline
Meanwhile, the International Energy Agency (IEA) warned that the conflict could wipe out growth in global oil demand this year, the first annual decline since the pandemic, noting that prices may not yet reflect the extent of the disruption.
The war has damaged energy infrastructure and severely limited traffic through the Strait of Hormuz, and a report from the Organization of the Petroleum Producing Countries OPEC Plus shows production fell by 7,9 million barrels per day in March.
