ECB Raises Interest Rates to 2.5% Amid Middle East Conflict-Driven Inflation

The European Central Bank (ECB) raised its main benchmark interest rate to 2.5% on Thursday, marking its second rate hike this year.

This decision comes amid rising inflation caused by the conflict in the Middle East and tensions between Washington and Tehran.

The bank's Governing Council warned that the outlook remains uncertain, leaving open the possibility of further monetary policy tightening.

Brent crude prices surpassed $100 per barrel on Wednesday, driving up energy costs and contributing to inflation in the eurozone, which reached 3.3% in August.