Middle East tensions from U.S.-Israel strikes on Iran have spiked global energy prices, prompting central banks to hold rates steady amid inflation concerns.

Escalating Middle East tensions, triggered by U.S.-Israeli strikes on Iran and Iranian retaliation, have caused a sharp rise in global oil and gas prices, raising inflation concerns in the eurozone. The European Central Bank is expected to hold its key interest rate steady at 2%, citing stable core inflation despite energy shocks. ECB President Christine Lagarde will stress vigilance and policy flexibility, avoiding comparisons to the 2022 crisis, while markets anticipate potential future hikes. Other major central banks, including the U.S. Federal Reserve and Bank of England, are also expected to maintain current rates amid uncertain inflation and growth outlooks.