Germany says transit through Strait of Hormuz must remain toll-free

The German government has called for transit through the Strait of Hormuz to remain toll-free, after Tehran agreed to temporarily reopen the key waterway as part of a two-week ceasefire deal with the United States.

A spokesman for the Foreign Office in Berlin noted on Wednesday that the Strait of Hormuz is not only part of Iran's waters, but subject to UN maritime treaties.

"And that is why it is essential that, when operations resume, free, safe and toll-free maritime traffic is guaranteed," he said.

"That is the German position, which is derived from the applicable international law."

Since a number of countries worldwide are affected by Iran's blockade of the strait, Germany believes that the United Nations is the right framework to address the issue, according to the spokesman.

Merz welcomes deal

Under the ceasefire agreement announced overnight, Tehran has agreed to temporarily lift its blockade of the Strait of Hormuz, a crucial chokepoint for global energy exports.

Iranian Foreign Minister Abbas Araghchi said safe passage through the Strait of Hormuz would be possible for two weeks in coordination with Iran's armed forces "and with due consideration of technical limitations."

Commercial shipping through the narrow waterway has virtually come to a standstill since the US and Israel launched their war on Iran on February 28, sending oil prices soaring and sparking concern over a sustained global economic crisis as the strait is vital for energy exports and other key commodities.

German Chancellor Friedrich spoke to US President Donald Trump on the phone on Wednesday, government sources said, after the German leader welcomed the agreement between the US and Iran.

"The aim now is to negotiate a lasting end to the war. We are in close coordination with our partners on this matter," Merz wrote on X.

Merz also thanked Pakistan for brokering the agreement.

Negotiations would serve to protect the Iranian civilian population and ensure security in the region, he argued, adding that they could avert a severe global energy crisis.

The German government "supports these diplomatic efforts," Merz said.

German Foreign Minister Johann Wadephul also praised the deal in a post on X.

"At last, some good news in politics too! I welcome the decision by the warring parties to agree to a ceasefire in the Iran conflict," the minister wrote

"This must be the decisive first step towards lasting peace, for the consequences of the war continuing would be incalculable," wrote the minister.

Berlin cautious on fuel prices

Despite the optimism from German leaders, a government spokesman warned that fuel prices are unlikely to come down quickly despite the ceasefire agreement.

"We need to be realistic in several respects," said deputy government spokesman Sebastian Hille. "Reopening the Strait of Hormuz will take time and will not immediately restore the situation to what it was in February."

In response to skyrocketing fuel prices caused by the Iran war, the government in Berlin has banned petrol stations from raising prices more than once a day.

However, diesel prices have surged since the measure came into force last Wednesday, with several new daily records registered by the country's ADAC automobile association.

The spokesman noted that it would take time to restore oil facilities in the Middle East damaged in the war, while the ceasefire agreement remained on fragile footing.

"We are still a long way from reaching an agreement [to end the war], and significant setbacks are possible at any time," Hille said.

Tankers carrying oil from the Strait of Hormuz take about three to six weeks to reach Europe, meaning it will take time for new supplies to become available, he noted.

"It will therefore take some time before we see any significant price reductions."

Economy minister faces backlash

Germany's governing parties meanwhile stressed that they want to continue negotiating further measures to help consumers shoulder high fuel prices.

"We are, of course, aware of the current pressures facing businesses and many members of the public, and we are continuing to explore measures to provide relief in the most targeted way possible," the Finance Ministry said.

Vice Chancellor Lars Klingbeil, who also serves as finance minister, has invited business and union representatives to a meeting on Friday to discuss ways to bring down high energy costs.

Meanwhile, Economy Minister Katherina Reiche, from Merz's conservatives, faces increasing backlash from the Social Democratic Party (SPD), the junior partner in the coalition, after she rejected nearly all expert proposals aimed at supporting households in the face of skyrocketing fuel prices.

Senior SPD lawmaker Dirk Wiese accused Reiche of letting down citizens by failing to take action and switch to crisis mode, noting that it was Klingbeil, also from the SPD, who was fuelling the debate on relief measures and a cap on fuel prices.

Reiche has rejected introducing a fuel discount or cutting vehicle tax, as proposed by some experts. She has also ruled out introducing car-free Sundays or a speed limit on Germany's motorway to save fuel, a controversial issue that has long divided the public.

The SPD, on the other hand, opposes Reiche's proposal of increasing a commuter allowance, arguing it would take until 2027 for citizens to benefit when they receive their tax returns for this year.