German government agrees fuel tax cut: sources

Germany's coalition government is considering a tax reduction on fuel for vehicles, according to sources, as the country faces high fuel prices caused by the ongoing Middle East conflict. The proposed measure would be in effect until the end of the year, followed by a cap on fuel sales prices, sources close to the government revealed to AFP.

The war, involving the United States, Israel, and Iran, has led to Iran's control over the Strait of Hormuz, disrupting Gulf crude exports. Compounding the issue, Yemen's Iran-backed Houthi rebels are now targeting an alternative export route through the Bab al-Mandab Strait. Saudi Arabia's state oil company Aramco has informed European refineries that they will not receive oil shipments next month, as reported by Bloomberg.

German Chancellor Friedrich Merz announced on Tuesday that he would provide solutions for motorists soon. Merz is facing significant political pressure after losing to the far-right AfD party in recent elections in Saxony-Anhalt and is expected to lose more ground in upcoming elections in two other German states.