ECB May Raise Rates if Iran War Fuels Inflation

ECB may raise interest rates if Iran war's energy-price shock leads to persistent inflation, said board member Isabel Schnabel.
Schnabel warned that a broader energy-price shock could require monetary tightening to prevent second‑round inflation effects, risk rising recently.
Market expects at least two quarter‑point hikes in 2026, while ECB President Lagarde signaled possible move in June.
Other officials—Slovakia’s Peter Kazimir, Bundesbank’s Joachim Nagel—called a hike “all but inevitable” unless inflation outlook improves.