ECB Prepares for Second Rate Hike Amid Escalating Iran-US Tensions

The European Central Bank (ECB) is poised to raise interest rates for the second time this year as renewed fighting in the Middle East pushes up energy costs and inflation.

Recent clashes between the US and Iran have sent oil prices soaring, threatening to further stoke inflation in the 21-nation eurozone, which relies heavily on energy imports.

Inflation in the eurozone hit a three-year high of 3.3 percent in August, substantially above the ECB's two-percent target.