This week, the price of oil rose sharply to nearly $120 per barrel due to developments related to the Iran conflict, effectively doubling since the beginning of the year. Such volatility in energy prices is reminiscent of the initial months following Russia's invasion of Ukraine, which had severe economic implications for Germany. Gabriel Felbermayr, a newly appointed economic advisor to the government, remarked that this situation marks a new energy price shock, echoing the challenges faced by the country during the 2022 gas and oil crisis that led to one of the longest economic downturns in its history and left citizens feeling significantly unsettled.

As uncertainty looms over whether energy prices will remain high as a consequence of the Iran conflict, there is a pressing need for the German coalition government to prepare for this scenario. The article stresses the importance of learning from the mistakes made during the 2022 crisis to ensure that the negative impacts on the economy and the population are mitigated. Consequently, proactive measures and strategies must be considered and implemented to combat the possible long-term effects of sustained high energy prices.

In summary, the commentary emphasizes that while the current situation remains fluid, it is crucial for the government to act decisively and effectively if high energy prices become a lasting issue. The lessons learned from previous crises should guide the development of policies that safeguard the economy and reassure citizens, thus preventing a repeat of the turmoil experienced in 2022.