Germany Can Weather Iran War If It Doesn’t Last, Institute Says

Germany’s economy is expected to suffer only a minor setback from the war in Iran if the conflict doesn’t escalate further, according to the German Institute for Economic Research in Berlin.

Higher oil and gas costs will reduce growth in Europe’s biggest economy by about 0.1 to 0.2 percentage point this year, leaving expansion at around 1%, said the institute, which is known by its acronym DIW. That outlook assumes that the biggest surge in energy prices linked to military intervention has already passed.