Three European Central Bank policymakers have warned that the institution may need to raise interest rates again if the ongoing crisis in Iran continues to drive up energy costs and fuel inflation.
The comments mark a significant shift in tone from within the ECB, as officials acknowledge that geopolitical shocks could force a reversal of the current monetary easing cycle.
While the officials stopped short of demanding an immediate rate hike at the bank's next meeting, their remarks underscore growing anxiety about the durability of price stability in the eurozone.
The warnings come as markets grapple with the potential for a second-round effect from elevated energy prices.
ECB President Christine Lagarde has previously cautioned that rising energy costs are no longer just a headline statistic but are beginning to exert tangible pressure on the broader economy.
The latest comments from individual policymakers suggest that this concern is spreading through the Governing Council, with some members now explicitly linking the Iran situation to a potential need for tighter policy.