Explanation:

Germany criticized Turkey for unilateral steps in the eastern Mediterranean that are undercutting efforts to de-escalate tensions with Greece and Cyprus over sea boundaries and drilling rights.

• Kastellorizo or Castellorizo, officially Megisti, is a Greek island and municipality of the Dodecanese in the Eastern Mediterranean.
• Germany said that any attempt by a Turkish survey ship to begin prospecting for hydrocarbons in disputed waters around the Greek island of Kastellorizo would strike a serious blow to efforts at easing tensions and improving ties between the European Union and Turkey.
• Turkey’s redeployment of the Oruc Reis survey vessel for new energy exploration around Kastellorizo has reignited tensions over sea boundaries between Greek islands, Cyprus and Turkey's southern coast.

Hence option 1st is correct.