Commodities
ECB Hikes Rates as Saudi Oil Pipeline Shutdown Adds Supply Risks
The European Central Bank (ECB) raised interest rates to 2.50% in response to higher energy prices pushing euro-area inflation further above its target.
The increase came as attacks on Saudi Arabia's East-West oil pipeline forced the country to close the principal pipeline used to bypass the Strait of Hormuz, disrupting oil supply and adding to uncertainty over central bank decisions.
In related news, UniCredit authorized shares for its Commerzbank takeover offer, a potentially important step in European bank consolidation. The deal would combine major Italian and German banking franchises.