ECB Hikes Interest Rates Amid Iran War Fears

The European Central Bank is expected to raise interest rates again this week in response to renewed fighting in the Middle East, which has pushed up energy costs and risks further stoking inflation.

Inflation in the 21-nation eurozone hit a three-year high of 3.3 percent in August, substantially above the ECB's two-percent target.

The central bank is set to hike its benchmark rate from 2.25 percent to 2.5 percent when it meets on Thursday, according to Andrew Kenningham, chief Europe economist at Capital Economics.