ECB Hikes Interest Rate Amid Iran War-Driven Energy Crunch

The European Central Bank has raised its key interest rate by 25 basis points to 2.50 percent, amid concerns about higher inflation.

This decision comes as the price of Brent crude topped $105 a barrel on Thursday, due in part to the ongoing Iran War and resulting energy supply crunch.

ECB President Christine Lagarde described the rate hike as 'a no-brainer' given the need to stabilize prices.

The move was made unanimously by the ECB's Governing Council, which stated that the decision will help navigate the uncertainty caused by the conflict.