ECB Hikes Rates Amid Ongoing Middle East Conflict

The European Central Bank (ECB) raised interest rates by a quarter percentage point to 2.50% in an effort to combat inflation fueled by high oil prices from the Iran war.

The move, supported by a stronger-than-expected economy, suggests businesses can weather higher borrowing costs.

The ECB said that 'the conflict in the Middle East continues to generate inflation pressures, and inflation is set to remain well above target for an extended period.'