Oil Shock Reignites Global Rate Hikes: ECB Moves Today, BOJ and Fed in Crosshairs

The European Central Bank is set to raise its deposit rate to 2.50% today, a quarter-point increase from 2.25%, in direct response to a sharp inflation spike driven by the escalating Iran war. Brent crude has surged back above $100 a barrel, hitting $101.04 as tanker warfare escalates in the Persian Gulf, forcing fuel-importing economies to confront resurgent price pressures.

Headwinds

The global economy faces a coordinated tightening cycle fueled by...