ECB Set to Hike Interest Rates Amid Middle East Tensions

The European Central Bank (ECB) is likely to raise interest rates again this week as tensions in the Middle East drive up energy costs and fuel inflation concerns.

Inflation in the 21-nation eurozone reached a three-year high of 3.3 percent in August, exceeding the ECB's 2 percent target.

The central bank is set to increase its benchmark rate from 2.25 percent to 2.5 percent when it meets on September 10, according to Andrew Kenningham, chief Europe economist at Capital Economics.

This move follows a previous hike in June and comes as the eurozone economy has shown resilience, growing faster than expected in the second quarter.