War in the Middle East: Economy Minister Roland Lescure hopes on RTL that "the hardest part is over" but it will be necessary "most likely" make additional savings

Guest on RTL Thursday June 18, the Minister of the Economy Roland Lescure welcomed the agreement between Iran and the United States that the American president signed Wednesday evening in Versailles on the sidelines of an official dinner with Emmanuel Macron. “I hope in any case that the hardest has passed,” he declared on RTL, while stressing that “negotiations will continue” and that “it is not going to be easy”.

The agreement signed between the United States and Iran contains the end of sanctions on the sale of Iranian oil and the lifting of the blockade of the United States, in the event of the conclusion of a final agreement, at the end of a period of negotiations of 60 days. A great victory for Iran, to the point that some see it as a capitulation of the United States. Roland Lescure does not share this analysis, “it’s a peace agreement”, he assures. “The lifting of sanctions is conditional,” he specifies.

A war that was costly

“What satisfies me is that we are going to reopen the Strait of Hormuz,” explains Roland Lescure. Maritime traffic in this strategic passage where 20% of the world’s hydrocarbons usually transit has fallen by 90% since the start of the war. The prospect of its reopening caused oil prices to fall this weekend. Diesel fell below the symbolic two euro mark on June 15.

This war of more than three months had consequences as far as France. The Minister of the Economy recognized that the crisis has left its mark on public finances. Asked about the cost of the war for the French economy, he mentioned “a few billion, at least 6, or even a little more.” the extent of the note”, he announced on RTL. Roland Lescure admits that this could lead the government “very probably” to step up its budgetary efforts.

The minister, however, wants to believe in an improvement in the second half of the year. “There is still a fairly strong probability today that we are in the process of emerging from this peace agreement,” he assured. According to him, the third quarter will be decisive in measuring the effect of the decline in energy prices and the return of confidence.

A drop in fuel prices expected

Roland Lescure wants to see this agreement as an encouraging signal for fuel prices in the weeks to come. He recalls that “we have dropped by 40 cents” and estimates that “on a full tank, it’s about 1 euro. That’s not nothing.”

The minister recognizes, however, that the return to pre-crisis levels will take time: “1.70, in my opinion, it will take a little time because there will still be uncertainties.” But he insists on the dynamic that has been established: “We have come back two-thirds of the way downward” and assures that distributors are “ready to play the game.”