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German Chancellor Friedrich Merz said on Friday, October 30, 2026, that the war involving Iran has cost Europe more than €100 billion over the past eight months through higher energy prices alone, and urged all sides to settle the conflict through negotiations rather than military action.
Speaking to journalists during a visit to South Korea, Merz said Germany was using multiple diplomatic channels to help bring the conflict to an end as quickly as possible.
"It has a large-scale impact on Europe," Merz said. "Because of this conflict we are already bearing enormous costs: due to higher energy prices alone, Europe's losses over the past eight months have exceeded €100 billion."
The figure represents the additional amount European businesses and consumers have paid as energy prices rose amid the conflict.
"I can only say to all parties to the conflict: this crisis cannot be resolved militarily, it must be resolved diplomatically, through negotiations," Merz said. He added that his call applied to Israel as well, including its reelected or possibly new government. "This conflict has no military solution," he repeated, adding that Germany was ready to support peace efforts through its diplomatic contacts across the Middle East.
The United States and Israel launched a military operation against Iran on February 28, 2026. On the night of July 8, the United States resumed large-scale strikes on Iran, accusing it of violating the terms of agreements related to the Strait of Hormuz, the strategic waterway that carries about 25 percent of the world's oil trade and around 20 percent of liquefied natural gas shipments.
Merz spoke at the end of a weeklong tour of Japan, Singapore and South Korea, during which Germany signed nine memorandums of understanding with South Korean organisations.