The President of the Federal Central Bank of Germany Bundesbank Joachim Nagel warned today of the dangers of an oil crisis due to the conflict between Israel and Iran, while demanding that monetary policy in the eurozone not be loosened, despite the fact that it is 2%.

The consequences of the attacks between the two countries, which intensified over the weekend, “remain uncertain” while a prolonged conflict “could cause a strong rise in oil” and “overturn our forecasts” on inflation and growth, Nagel said.

Oil prices raised a limited rise early this morning, after up to 13% on Friday, when the first Israeli blows against Iran had taken place.

Around 10:20 (Greek time), the price of US WTI barrel rose 1.15%to $ 73.82, and that of the North Sea Brent barrel increased by $ 0.99%to $ 74.97.

In May, inflation in the eurozone fell to 1.9%, according to Eurostat’s preliminary estimation, which confirms the ECB’s decision to reduce its on -site on -time on -one year in June.

Eurostat also reduced its inflation forecasts in 2025 (2.0%) and 2026 (1.6%), precisely due to the recession of energy prices and euro reinforcement.

However, the increased risks in the event of constant escalation in the Middle East and are added to commercial tensions with the United States, which have not yet been settled, make it “imperative” for the European Central Bank to remain “flexible”, without a new reduction in a new reduction. “Ierakas” known for his Orthodox monetary policy.

In June, the ECB reinstated its main depository at 2%, a level that is no longer considered restrictive, having culminated in 2023 at 4.0% to rise prices after the Russian war in Ukraine.

Although ECB President Christine Lagarde reiterated that every decision on interest rates will be taken “meeting the meeting”, depending on the evolution of the data, has also been reported at the “end of a monetary cycle” and experts are waiting for a cessation of interest rates at the next meeting.