ECB Governing Council member Nagel said the bank is monitoring energy prices closely after renewed US‑Iran fighting raised geopolitical uncertainty. He said energy price paths will be decisive for the inflation outlook and that monetary policy will remain highly vigilant. The ECB meets on July 22-23 and will enter its pre-decision blackout; markets largely expect rates to be left unchanged then, though investors price the risk of further tightening later in the year if Iran-related supply shocks

ECB Governing Council member Nagel said the bank is monitoring energy prices closely after renewed US‑Iran fighting raised geopolitical uncertainty. He said energy price paths will be decisive for the inflation outlook and that monetary policy will remain highly vigilant. The ECB meets on July 22-23 and will enter its pre-decision blackout; markets largely expect rates to be left unchanged then, though investors price the risk of further tightening later in the year if Iran-related supply shocks push up inflation. Nagel said borrowing costs are currently at an "appropriate" level following June’s decision but officials stand ready to act decisively if necessary.