European Central Bank warns Iran war may raise euro-area inflation expectations
The European Central Bank (ECB) has raised concerns that the ongoing conflict in Iran may lead to increased inflation expectations in the euro area. Oil prices have surged above $120 per barrel, prompting a shift in firms' inflation expectations from 2.5% to 3.0%. The ECB is currently in a difficult position, needing to balance inflation control with economic growth amidst rising energy prices.
- ▪The ECB warns that the Iran conflict could lift medium-term inflation expectations across the euro area.
- ▪Oil prices have exceeded $120 per barrel, contributing to rising inflation expectations.
- ▪The ECB's SAFE survey indicates a jump in firms' one-year inflation expectations from 2.5% to 3.0%.
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European Central Bank warns Iran war may raise euro-area inflation expectations Oil prices above $120 per barrel and firm-level survey data show inflation expectations climbing, forcing the ECB into a holding pattern on rates. Share Add us on Google by Editorial Team May. 29, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); The European Central Bank has a new headache, and it smells like crude oil.
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