Isabel Schnabel, a member of the European Central Bank’s Executive Board, has signaled that the institution remains deeply concerned about the potential for renewed oil price spikes, despite the recent resumption of crude flows through the Strait of Hormuz.
The German economist’s comments highlight a persistent disconnect between the immediate physical reality of reopened shipping lanes and the central bank’s assessment of underlying geopolitical risk.
While the immediate supply shock has abated, Schnabel argues that the structural vulnerability exposed by months of closure continues to weigh on economic sentiment and inflation expectations.
This caution aligns with broader warnings from ECB leadership.
President Christine Lagarde has previously emphasized that elevated energy costs are no longer abstract headline figures but are exerting tangible pressure on the broader eurozone economy.
The central bank’s stance suggests that policymakers are not yet ready to declare the energy inflation chapter closed, even as markets begin to price in a return to normalcy.