Germany is planning a temporary reduction in fuel taxes after talks between coalition party leaders.

Chancellor Friedrich Merz has announced that the government will reduce energy taxes on diesel and gasoline by about 17 cents per liter for two months.

"This will very quickly improve the situation for drivers and businesses in the country," Merz said.

Oil prices in Germany have risen sharply in recent weeks after fighting in Iran blocked most of the passage of oil tankers through the vital Strait of Hormuz.

"This conflict, this war, is the real cause of the problems we have in our country as well," Merz said.

The Chancellor added that he and Foreign Minister Johann Wadephul were doing everything they could to work towards ending the war.