Risks of escalation in US-Iran conflict, traders increase bets on European Central Bank raising interest rates.

The risk of further escalation in the conflict between the US and Iran has made traders cautious, and the market is once again confident that the European Central Bank will raise interest rates three times by 25 basis points each; in contrast, market expectations at the close of last Thursday reflected an increase of around 69 basis points. As the market undergoes this hawkish repricing, European natural gas futures prices have risen by over 1%, and June Brent crude oil futures are only about $1 away from their high point since the conflict erupted. Since the conflict erupted, Iran has not allowed a single ship of liquefied natural gas to leave the Strait of Hormuz, exacerbating supply shortages in the energy market. European Central Bank board member Sleijpen also pointed out that the bank will discuss in April whether it is necessary to raise interest rates.