ECB's Lane says it is too early to assess the duration of the Iran war shock, hard to know whether it is temporary or something bigger

ECB's Lane's comments highlight uncertainty around the economic impact of the Iran war shock, which is particularly relevant as it could influence inflation and growth forecasts. By stating it's too early to evaluate whether this shock is temporary or significant, he suggests that the ECB may need to adopt a cautious stance in future policy decisions. This could create volatility in the EUR and related markets as traders assess the implications for monetary policy.