The conflict involving Iran has cost Europe more than €100 billion over the past eight months, largely due to rising energy prices, German Chancellor Friedrich Merz has said, calling on all parties to pursue a diplomatic solution.

Speaking to journalists during a visit to South Korea, Merz said Germany was using multiple diplomatic channels to help bring the conflict to an end as quickly as possible, according to TASS.

“The conflict is having a massive impact on Europe. We are already facing enormous costs because of it: higher energy prices alone have cost Europe more than €100 billion over the past eight months,” he said.

Merz said that the figure represents the additional amount paid by European businesses and consumers as energy prices increased amid the conflict.

The German chancellor stressed that Europe has a direct economic interest in ending the confrontation.

“I can only say to all parties to the conflict: this crisis cannot be resolved militarily. It must be addressed diplomatically, through negotiations,” he said.

Merz said his call for a diplomatic settlement also applied to Israel and its current or future government.

“This conflict has no military solution,” he reiterated, adding that Germany was ready to support peace efforts through its diplomatic contacts across the Middle East.

The US and Israel launched a military operation against Iran on February 28. In June, Washington and Tehran signed a memorandum of understanding providing for an immediate cessation of hostilities on all fronts, including in Lebanon.

However, the US resumed large-scale strikes against Iran on the night of July 8, accusing Tehran of violating the understandings reached over the Strait of Hormuz.

The strategic waterway is a major global energy transit route, carrying approximately 25% of worldwide oil trade and around 20% of liquefied natural gas shipments.

The US administration subsequently signaled a shift away from large-scale military action toward efforts to exert economic pressure on Iran through sanctions.