Germany moving to fast-track fuel tax cuts, finance minister says

German Finance Minister Lars Klingbeil said planned tax cuts for motorists to help with high fuel costs will be implemented "as quickly as possible," adding he has instructed his ministry to begin preparations immediately.

"I assume that all other involved ministries and the Chancellery are doing the same," Klingbeil told dpa. In the end, the Bundestag will decide, he said. "We will not lose any time. If it were up to me, it should be decided by early May at the latest."

Coalition leaders have agreed to cut taxes on diesel and petrol by €0.17 ($0.19) per litre for two months. Employees would also be eligible for a tax-free bonus of up to €1,000 from their employers. The measures are designed to offset surging oil prices linked to the Iran conflict.

Klingbeil said the United States and Iran bear responsibility for finding a sustainable path to peace. He criticized the situation around the Strait of Hormuz, warning that instability was worsening energy markets and supply chains.

He said negotiations should continue and lead to a ceasefire, adding that it "must be ensured" that the Strait of Hormuz is secure and open.

Following the breakdown of US-Iran talks over the weekend, the situation should also be reassessed by European partners, Klingbeil said. The minister is due to travel to Washington on Tuesday for the International Monetary Fund and World Bank spring meetings.

The United States and Iran held 21 hours of direct talks in Islamabad over the weekend in a bid to reach to end the war in the Middle East, but no agreement was reached.

Klingbeil stressed that "no one has sympathy for the Iranian regime," but said the current crisis was "a mess created by the Americans in Iran," and reiterated that both sides must work toward a durable peace solution.