Published by Global Banking & Finance Review®
Posted on March 27, 2026
1 min readLast updated: March 27, 2026
Add as preferred source on GoogleGermany’s coalition is weighing new measures—including a windfall tax, price caps, electricity-tax cuts, and restarting coal plants—to ease surging energy costs driven by the conflict around Iran and disruptions in the Strait of Hormuz.
BERLIN, March 27 (Reuters) - A working group in Germany's ruling coalition has asked the government to consider additional measures such as a windfall tax and price caps in order to cushion Germans from a price surge due to the Iran war, lawmakers said on Friday.
The group of conservative and centre-left lawmakers also suggested lowering electricity costs for households, cuts to energy tax and bringing coal power stations back online.
"There is no supply problem, but a price problem," said Armand Zorn from the centre-left Social Democrats.
The additional measures are based on a scenario of the war dragging out and the Strait of Hormuz remaining shut to most shipping for an extended period.
Iran has effectively blocked the Strait of Hormuz, which carries about 20% of global oil and liquefied natural gas, driving up energy prices and roiling financial markets.
(Reporting by Holger Hansen, writing by Matthias WilliamsEditing by Ludwig Burger)
Energy costs are rising due to the Iran war and the closure of the Strait of Hormuz, which disrupts global oil and LNG supply.
The coalition is considering a windfall tax, price caps, lowering electricity costs, and reducing energy taxes.
Iran's blockade of the Strait of Hormuz disrupts supply routes, driving up global and German energy prices.
According to German lawmakers, there is no supply problem but rather a price problem due to market disruptions.
The government is considering bringing coal power stations back online as a temporary measure to counter high prices.
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