What is the correct course of action in this situation?

You chose correctly by waiting for the oncoming road user to pass first. This situation involves a narrow road where passing at the same time could be dangerous. According to German traffic rules, when two vehicles approach a narrow section of the road and only one vehicle can pass at a time, the driver who is nearer to the obstacle or parked vehicle must give way to the oncoming vehicle coming from the opposite direction.

Here, the van is parked on your side, so you must wait and allow the oncoming vehicle to pass first before you continue driving. This ensures safety and prevents possible collisions in tight spaces. The other options are incorrect because you do not have priority, and you cannot simply rely on mutual agreement on the road without observing the rules for narrow passages.