European Union — European Central Bank & Iraq

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.

Iraq: Iraq is one of the Persian Gulf producers whose oil supplies have been disrupted by the Strait of Hormuz closure, and it has struck arrangements with Iran to move oil.

European Union — European Central Bank: Held rates steady but a September rate hike is about 70% priced in.

Iraq: Prime Minister visited Tehran to mediate; border crossing with Iran was struck by US missiles.

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.

Iraq: Iraq is a major Gulf producer whose oil exports transit through the Strait of Hormuz. The reopening of the strait is crucial for its energy exports and global market stability.

European Union — European Central Bank: ECB faces inflation from energy costs, but rate hike odds low.

Iraq: Iraq has seen US troop deaths and Iranian attacks, while hosting US forces and mediating between the sides.

European Union — European Central Bank: The European Union — European Central Bank may have to tighten interest rates due to accelerating inflation in Europepe, partly influenced by global economic strains from the U.S.-Iran conflict.

Iraq: Iraq's foreign minister was contacted by Iran's Foreign Minister, indicating its peripheral involvement in diplomatic discussions related to the conflict.

European Union — European Central Bank: The ECB's policy forum is being watched for signals amid market volatility.

Iraq: Iraq has been a location of US operations and a drone disposal incident. Its PM is working to control armed groups.

European Union — European Central Bank: The European Union — European Central Bank is expected to make a decision on interest rates, following the United States — Federal Reserve, in a week of significant economic touchpoints.

Iraq: Iraqi Muslim women protested against US and Israeli attacks on multiple cities across Iran.

European Union — European Central Bank: The European Union — European Central Bank is anticipated to keep interest rates unchanged due to inflation worries, a separate market focus.

Iraq: Iraq>>> has been involved in oil export deals with Iran>>> and has seen drone attacks on Saudi Arabia>>> reportedly originating from its territory.

European Union — European Central Bank: The European Union — European Central Bank is anticipated to keep interest rates unchanged due to inflation worries, a separate market focus.

Iraq: Iraq's Umm Qasr port was the site of an attack on an Oman Shipping Company vessel, indicating the spillover of the conflict into its territory. This highlights the broader regional instability affecting its infrastructure and trade.