European Union — European Central Bank & China

European Union — European Central Bank: The European Union — European Central Bank raised interest rates in response to inflation fueled by the Iran war, becoming the first major central bank to do so, aiming to dampen consumer price inflation.

China: China's factory activity expanded due to stockpiling, but it is also a source of global trade imbalances and faces pressure from G7 nations regarding its industrial policies.

European Union — European Central Bank: The European Union — European Central Bank (ECB) welcomed the US-Iran ceasefire, with President Christine Lagarde noting its potential to reopen the Strait of Hormuz. However, policymaker Joachim Nagel cautioned that it would not bring immediate relief to high euro zone inflation, influencing market expectations for future rate hikes.

China: China has welcomed the interim agreement and urged for the swift reopening of the Strait of Hormuz to ensure the stability of global industrial and supply chains. Its foreign minister, Wang Yi, has called for continued efforts towards peace and stability in the Middle East.

European Union — European Central Bank: The European Union — European Central Bank provided estimates for future oil prices, which have risen due to the war's impact on replenishment costs.

China: China, as the world's biggest oil importer, curtailed buying and utilized its large oil reserves, along with its electric vehicle adoption, to ease global demand pressure during the crisis.

European Union — European Central Bank: The European Union — European Central Bank cut interest rates in the first half of 2025, providing a boost to financial markets across Europe.

European Union — European Central Bank: The European Union — European Central Bank is mentioned in the context of its monetary policy's role in strengthening the European Union's single market and supporting growth.