ECB hopes to look through energy price shock from Iran war and Lagarde says it's too early to know the impact of the Iran war, while it sees rates steady if shock is temporary but may hike rates twice if energy shock is persistent, according to FT

The ECB's stance suggests a wait-and-see approach regarding the Iran war's impact on energy prices, indicating a potential divergence in policy depending on whether the shocks are temporary or lasting. If the energy price shock is persistent, it could lead to two rate hikes, which may affect Eurozone yield curves and the euro itself. This adds a layer of uncertainty to both monetary policy and market sentiment going forward.