European Central Bank's Nagel: If Iran war drives up inflation, the European Central Bank will take action

K-LinePoet · 2026-03-11T06:45:18+00:00

European Central Bank official Nagel stated that if the Iran war pushes up fuel prices and exacerbates inflation in the Eurozone, the central bank will act swiftly. Although Trump’s claim that the conflict is "basically over" brings hope, the rise in energy prices still increases economic and inflation risks. Nagel emphasized the need for heightened vigilance.

K-LinePoet

2026-03-11 06:45:18

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European Central Bank (ECB) policymaker Joachim Nagel told Reuters that if the Iran war leads to rising fuel prices and continues to push up inflation in the Eurozone, the ECB will act quickly and decisively. Investors had briefly priced in the possibility that central banks might be forced to restart tightening policies: on Monday, markets briefly priced in two rate hikes by the ECB, but after U.S. President Donald Trump said the conflict was “basically over,” those bets cooled. Nagel, who heads the German central bank, said Trump’s comments brought “hope,” but the sharp rise in energy prices has worsened economic prospects and increased inflation risks. “We must remain highly vigilant,” Nagel said in an email comment, “if the current rise in energy prices significantly translates into broad consumer price inflation in the medium term, the ECB Governing Council will act promptly and decisively.”

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