ECB Hikes Rates Amid Iran War Inflation Concerns

The European Central Bank (ECB) has raised its benchmark interest rate by 25 basis points to 2.50% in Berlin, as concerns over inflation and the Iran war continue to rise.

Inflation is expected to remain above target for an extended period, with prices set to increase due to high oil prices from the ongoing conflict in the Middle East.

The ECB's decision was made at a meeting held away from its Frankfurt headquarters, highlighting the bank's efforts to adapt to changing economic conditions.

Eurozone bond yields rose and stocks fell as markets priced in tighter policy, with Germany's 10-year bond yield hitting its highest level since 2011 and France's 30-year yield reaching levels last seen in 2003.