ECB Hikes Rates Again Amid Iran War-Driven Inflation Fears

The European Central Bank (ECB) has raised interest rates for the second time this year in an effort to combat rising inflation driven by the ongoing Iran war.

The ECB's policy rate was increased from 2.25% to 2.5%, with policymakers citing concerns about energy-driven price hikes and inflation staying above its 2.0% target for some time.

The conflict in the Middle East has contributed to higher oil prices, which have risen back above $100 a barrel, fueling fears of widespread price increases in the euro zone.

The ECB now sees inflation at 3.0% this year, 2.5% next year, and 2.1% in 2028.