March 28, 2026 — From DW’s newsroom in Bonn: the Iran war is dominating Germany’s domestic debate, stoking worries about inflation and sparking heated exchanges between Berlin and Washington.
Chancellor Friedrich Merz warned that US President Donald Trump’s recent escalation will have consequences beyond the Middle East. Merz said he told Trump: “If you want us to help, then please ask us beforehand … not afterwards through the newspapers.” He called the US actions a “massive escalation,” questioned the realism of goals aimed at removing Iran’s leadership, and cautioned that attempts at regime change have often failed.
Public fears for the cost of living are rising. A YouGov/Postbank poll of 2,028 people found nine in ten Germans expect living costs to rise in the coming months and almost a third believe the Iran war will drive significant price increases. Households on incomes under €2,500 a month are hardest hit: nearly a quarter say they can barely cover basic expenses. Food, energy and transport topped the list of cost pressures.
Vehicle fuel prices in Germany have climbed between 15% and 30% since the conflict began, and many economists warn that higher oil and gas prices after Iran’s effective closure of the Strait of Hormuz could push inflation up again. How severe the rise will be depends largely on how long the war continues. Germany’s inflation rate fell to 1.9% in February, below the European Central Bank’s 2% target.
Merz floated a limited role for the Bundeswehr once the fighting ends, saying German minesweepers could help clear the Strait of Hormuz — but only under a genuine collective-security mandate such as the UN, NATO or EU and with a Bundestag resolution. He described the idea as “theoretical” while Iran has not been reported to have laid mines in the waterway.
Tensions between Merz and Trump have sharpened after both leaders traded barbs about Germany’s role. Merz accused Trump of escalating rather than pursuing de-escalation or a peaceful route, warning of unpredictable and dangerous consequences. Trump, for his part, criticised Germany for not doing more to secure energy shipments and compared Germany’s stance to US support for Ukraine.
Washington has given Iran an ultimatum to reopen the Strait of Hormuz or enter negotiations by April 6, or face US strikes on Iranian power plants, a timeline that adds pressure to political and economic decision-making in Europe.
German Foreign Minister Johannes Wadephul said Berlin now has clearer information on US aims, while Transport Minister Patrick Schnieder urged citizens to consider buying the Deutschlandticket to offset rising fuel costs.
Economists and bankers are sounding precautions. Deutsche Bank economist Ulrich Stephan linked deteriorating household finances to the earlier 2022 inflation shock and warned current developments could reignite price pressures.
Separately, police launched a major operation after an incident in Witten, western Germany, in which a mother and two children were seriously injured. The emergency call came at 10:29 a.m. local time on Saturday. DPA reported one child was seriously injured. A suspect has been arrested; witnesses described the detained person as blood-covered and handcuffed and guarded by police. Authorities have released few details so far.
Stay with DW for further updates from across Germany as the situation develops.