What is the right course of action?

You selected the correct answer, which is to wait because the two pedestrians have priority. In German traffic law, when you want to turn (especially when turning left or right), pedestrians who are crossing or about to cross the road you are turning into always have priority. You must let them cross safely before making your turn. This rule ensures pedestrian safety at intersections and crosswalks. Remember, always look out for pedestrians when turning, even if there is no marked crosswalk.