ECB's de Guindos says the outbreak for the Iran war has made the growth and inflation outlook significantly more uncertain, sharp increase in energy prices poses upside risks for inflation and downside risks for economic growth

The comments from ECB's de Guindos highlight that geopolitical tensions, particularly relating to the Iran conflict, are amplifying uncertainty in both growth and inflation forecasts. The mention of rising energy prices introduces inflationary pressures while simultaneously threatening economic growth, underscoring the delicate balance central banks face. This signals to markets that the ECB remains alert and prepared to respond, which could influence rate expectations and cross-asset dynamics.