ECB's Negrel: If the Iran War pushes up inflation, the ECB will take action.

European Central Bank policy maker Joachim Nielson told Reuters that if the Iran war leads to a rise in fuel prices, and continues to push up inflation in the euro area, the European Central Bank will act quickly and decisively. Investors had once bet that central banks around the world might be forced to restart tightening policies: the market briefly priced in the European Central Bank raising interest rates twice on Monday, but after US President Donald Trump said the conflict "is basically over", these bets cooled down. Nielson, who heads the German central bank, said Trump's comments brought "hope", but the spike in energy prices has worsened economic prospects and raised inflation risks. "We must remain highly vigilant," Nielson said in an email comment, "if the current rise in energy prices clearly translates into widespread consumer price inflation in the medium term, the European Central Bank's Governing Council will act promptly and decisively."