ECB Eyes Rate Hike as Oil Prices Soar Above $100 Per Barrel

The European Central Bank (ECB) has left its key deposit rate at 2.25 percent, but officials are preparing for a potential move in seven weeks' time.

Martin Kocher, head of the Austrian central bank, said that if it becomes necessary to raise interest rates to achieve the ECB's medium-term inflation target of two percent, it will happen.

The path forward has become cloudier after Middle East hostilities widened on Thursday, pushing oil prices above $100 per barrel for the first time in two months.

Bundesbank President Joachim Nagel stressed uncertainty in a statement: 'We are still facing intense uncertainty.'

Bank of France chief Emmanuel Moulin warned that the increase in oil prices could turn into other price increases, notably services and transport prices, which is what they want to avoid.