TREE NEWS update: German Chancellor Friedrich Merz said on the 21st that the Middle East conflict is severely impacting global energy markets and supply chains. Speaking at the 2026 Berlin Global Dialogue forum, Merz said the blockade of the Strait of Hormuz and the Bab el-Mandeb Strait has further aggravated the effects. He said Germany and Europe must improve their business environment, increase private investment and deepen international cooperation, supporting EU expansion of trade relations and new trade agreements.
German Chancellor Merz: Middle East conflict severely hits global energy markets and supply chains
Merz's remarks carry weight because they frame the Middle East conflict as a European competitiveness problem, not just a regional security one — naming two chokepoints in the same breath signals that supply-chain stress is being treated as a structural condition rather than a temporary shock. The emphasis on business environment, private investment and EU trade expansion suggests Berlin is steering toward diversification and domestic resilience rather than emergency energy measures. The open question is whether this rhetoric translates into concrete EU trade action, and whether other European leaders echo the chokepoint framing in the months ahead.
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