ECB Hike Imminent Amid Ongoing Oil Price Surge

The European Central Bank (ECB) is set to hike interest rates as investors come to terms with the new normal of elevated bond yields and higher oil prices.

The ongoing Middle East war has pushed crude futures above $100 a barrel for the first time since July, while long-term bond yields are at highs not seen since before the global financial crisis.

This toxic mix is weighing on sentiment as policymakers struggle to quell inflation angst ahead of central bank meetings. The ECB's decision will be closely watched, with investors pricing in about 60% odds of a rate hike next week.