European Central Bank (ECB) officials have indicated the possibility of raising interest rates as early as the April 29–30 meeting if the ongoing conflict in Iran leads to a significant rise in inflation above the target. While no decision has been finalized, some officials suggest that a rate hike in June might be more likely. Market participants have responded by increasing their bets on monetary tightening, now anticipating at least two rate hikes by the ECB this year. This reflects growing concerns over inflationary pressures exacerbated by geopolitical tensions.