ECB Hikes Rates as Iran War Fuels Inflation Fears

The European Central Bank (ECB) is expected to raise interest rates for the second time this year on Thursday, in an effort to combat rising inflation caused by the ongoing Iran war and soaring energy prices.

The conflict has pushed oil and gas prices sharply higher, with Brent crude touching $100 a barrel on Wednesday. This has renewed concerns over a broader wave of price increases across the fuel-importing euro zone.

Economists expect the ECB to lift its policy rate to 2.50% from 2.25%, while signaling that further tightening could follow if the inflation outlook deteriorates.