ROUNDUP 2: IEA wants to release record amount of oil reserves because of the Iran war
PARIS – The International Energy Agency (IEA) wants to release a record amount of strategic oil reserves in response to the Iran war. In total, the agency’s 32 member countries will release 400 million barrels of crude oil, according to a statement published in Paris. Never before has so much oil been tapped from reserves in a previous joint operation. The move is intended to stabilize markets that have been strained by the war. Germany had already announced that it would release 19.5 million barrels. In addition, gas stations in Germany should only be allowed to increase their fuel prices once a day.
ROUNDUP: US inflation remains at 2.4 percent – experts expect an increase
WASHINGTON – Inflation in the US remained unchanged in February, as expected, ahead of the impact of the Iran war. Consumer prices rose by 2.4 percent year-on-year, as the Labor Department announced on Wednesday in Washington. Inflation was already at this level in January and analysts had expected an unchanged rate on average.
OVERALL ROUNDUP: Strait of Hormuz attacks intensify Iran war
TEHRAN/TEL AVIV/WASHINGTON – In the Iran war, several ships have come under fire in and near the Strait of Hormuz, which is important for global oil trade. The British Merchant Shipping Safety Authority (UKMTO) said they were hit by “unknown projectiles”. Iran’s military leadership appeared determined to further disrupt shipping traffic through the strait between the Persian Gulf and the Gulf of Oman in order to further increase the costs of the war for the United States and Israel. Meanwhile, Israel and Iran continued to attack each other and the US military also spoke of ongoing attacks on targets in Iran.
Zelensky rejects easing sanctions on Russia
KIEV – Ukrainian President Volodymyr Zelenskyj has spoken out against easing sanctions against Russia against the background of the Iran war. “If the sanctions are relaxed, then this aggression will be recognized,” said the head of state at a press conference with Bundestag President Julia Klöckner (CDU) in Kiev. That would be “absolutely unfair.” He is convinced that Chancellor Friedrich Merz (CDU) also sees it that way.
ROUNDUP: Bundesbank is looking for new headquarters in Frankfurt
FRANKFURT – After the renovation of its headquarters, the Bundesbank will not move back into the striking concrete building in the north of Frankfurt. “The economic feasibility study has clearly shown that purchasing a property is significantly more cost-effective than accommodating the Bundesbank headquarters at its current location on Wilhelm-Epstein-Straße,” said Bundesbank President Joachim Nagel.
DIW: Iran war has little impact on the economy – but drives up prices
BERLIN – According to the German Institute for Economic Research, the Iran war is likely to only have a slight impact on the country’s economy. However, consumer prices could rise significantly, predicts the DIW in Berlin.
Lagarde: ECB wants to keep inflation under control
FRANKFURT – The European Central Bank (ECB) wants, according to the President’s words Christine Lagarde prevent a sharp rise in inflation due to the Iran war. “We will do everything necessary to keep inflation under control,” Lagarde said on Tuesday evening on the French television channel France 2. It should be ensured that the consequences of the war in the Middle East do not trigger a surge in inflation, as was the case in 2022 and 2023, when the Russian war of aggression against Ukraine drove up prices.
ECB Council member sees faster Interest rate increase than previously thought
FRANKFURT – The Council member of the European Central Bank (ECB), Peter Kazimir, sees the possibility of a faster interest rate increase than previously thought due to the consequences of the war in the Middle East. “I would say a reaction from the ECB may be closer than many people think,” the president of the central bank of Slovakia said in an interview with the Bloomberg news agency on Wednesday. Specifically, the central banker did not want to speculate about the timing of an interest rate increase when making interest rate decisions in April or June. “But we will be ready to act if necessary,” Kazimir assured.
Germany: Inflation falls to 1.9 percent – is there a risk of a new price shock?
WIESBADEN – At 1.9 percent, inflation in Germany fell back below the two percent mark in February. But there is great concern that the Iran war will not only drive up oil and gas prices in the short term, but also inflation. According to economists, the duration of the war plays a decisive role.
ROUNDUP/DIW: Iran war has little impact on the economy – more economists’ voices
BERLIN – Rapid rise in oil prices, disrupted air traffic, de facto blockade of the Strait of Hormuz: The Iran war has long had consequences for the economy. But how badly will it affect the already struggling economy in Germany? And can it destroy the hoped-for upswing supported by huge government spending on armaments and infrastructure? Economists’ assessments differ here.
Customer note:
ROUNDUP: You read a summary in the economic overview. There are several reports on this topic on the dpa-AFX news service.
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