ECB Holds Rates Amid Iran Conflict-Driven Oil Price Surge

The European Central Bank (ECB) decided to keep interest rates unchanged on Thursday amid rising oil prices due to the escalating Iran conflict.

The decision came after a meeting of the ECB's Governing Council, which reviewed all available data and assessed the situation before unanimously deciding to leave interest rates at 2.25 percent.

ECB President Christine Lagarde noted that there were 'benign developments' in inflation and economic conditions despite volatile energy prices.

Lagarde also emphasized that the ECB would need to assess incoming data before making monetary policy decisions, particularly regarding a potential September rate hike.