Global Market: ECB monitoring Middle East conflict for inflation risks

ECB policymaker Martin Kocher said the central bank is closely monitoring Middle East conflict for potential inflation spillovers through higher energy and commodity prices, though no second-round effects have been identified yet. He noted the eurozone economy has remained resilient but warned a prolonged conflict involving Iran could make the economic environment more difficult. Medium- and long-term inflation expectations remain well anchored, and the ECB stands ready to adjust policy if risks increase.