Iran war fuels central bank rate hike bets on inflation fears

War in Iran drove energy costs higher, putting European central banks under market pressure to lift interest rates and reviving the risk of a new inflation wave. That increases the likelihood of tighter monetary policy in Europe, raising borrowing costs and creating risk-off dynamics for rates-sensitive assets.

Analysis

War in Iran drove energy costs higher, putting European central banks under market pressure to lift interest rates and reviving the risk of a new inflation wave. That increases the likelihood of tighter monetary policy in Europe, raising borrowing costs and creating risk-off dynamics for rates-sensitive assets.