Iran War and Strait of Hormuz Closure Push Fuel Prices Higher in Germany

Fuel prices in Germany remain elevated amid continued geopolitical tensions surrounding the Iran war and the renewed closure of the Strait of Hormuz, a vital global oil shipping route. As of June 21, 2026, the average price of gasoline in Germany stands at €1.93 per liter, while diesel costs €1.79 per liter. Although these prices are somewhat lower than the peak prices seen earlier this year, they remain above pre-war levels of €1.83 for gasoline and €1.75 for diesel. This pricing dynamic is primarily driven by supply disruptions linked to the Iran conflict, especially the significant bottleneck created by the repeated closure of the Strait of Hormuz, which accounts for about 30% of the world’s oil transport.

Since the onset of the conflict, oil prices have surged considerably, putting upward pressure on fuel costs at the pump in Germany. In response, the German government introduced a tank rebate starting May 1, 2026, which temporarily reduced the energy tax and helped curb prices by approximately 17 cents per liter. However, the rebate only applies to the purchase price at gas stations, not the selling price, and dealers have faced challenges adhering to new regulations that limit price increases to once daily at noon. Despite these measures, some gas stations violated the rule in the initial month of implementation.

The price gap between gasoline and diesel persists, with diesel remaining costlier due to its critical role in industrial applications and a higher reliance on imports. The German Federal Cartel Office (Bundeskartellamt) is closely monitoring the situation to prevent any anti-competitive practices that might further aggravate price hikes.

Geopolitical developments continue to exacerbate the energy market volatility. Heiner Hoffmann from ARD Kairo reported on June 21, 2026, about the renewed closure of the Strait of Hormuz, underscoring the fragile security situation and its direct impact on global oil supply chains. This ongoing disruption is a key factor influencing fuel price volatility in Germany and beyond.

With the conflict unresolved and the Strait’s status uncertain, Germany faces continued challenges in stabilizing fuel prices and ensuring energy security for its consumers and industries.