German Chancellor Merz says Iran war has cost Europe more than €100 billion in higher energy prices over eight months

German Chancellor Friedrich Merz said Friday that the war involving Iran has cost Europe more than €100 billion in higher energy prices over the past eight months, arguing that the conflict must be ended through diplomacy rather than military force.

Speaking to journalists during a visit to South Korea, Merz said the figure represented the additional amount paid by European businesses and consumers as energy prices rose because of the conflict.

“Higher energy prices alone have cost Europe more than €100 billion over the past eight months,” Merz said.

He added that Germany and Europe therefore have a direct economic interest in bringing the conflict to an end as quickly as possible.

“I can only appeal to all parties to the conflict: This conflict cannot be resolved militarily,” Merz said, adding that it must be settled through diplomacy and negotiations.

Merz said the appeal applied to Israel as well, including its current or any future government, and stressed again that there was no military solution to the conflict.

The chancellor did not provide a detailed breakdown of how the €100 billion figure was calculated.

His remarks came as Europe continues to face sharply elevated oil and gas prices linked to the Iran war and disruptions to energy flows through the Strait of Hormuz, intensifying pressure on households and energy-intensive industries.