ECB Rate Hike Expected Amid Ongoing Middle East Conflict

The European Central Bank (ECB) is expected to raise interest rates today in response to elevated bond yields and higher oil prices, driven by the ongoing Middle East conflict.

Oil prices have been rising steadily, with Brent crude futures trading above $100 a barrel for the first time since July. Long-term bond yields are also at highs not seen since before the global financial crisis.

ECB President Christine Lagarde will take center stage in addressing market concerns about inflation, which has been exacerbated by the conflict and rising energy prices.

The euro is currently steady against the US dollar ahead of the rate decision, while European stock futures point to a muted open. The outcome of today's rate hike will be closely watched as policymakers struggle to quell markets' inflation angst.