Full report hereECB's Escriva said he is closely monitoring the uncertain situation in the Middle East following renewed US strikes on Iran, describing the current peace agreement as fragile. However, he emphasized that the ECB cannot adjust monetary policy in response to every geopolitical development and should instead remain focused on the broader economic impact.He said policymakers will continue to watch oil prices, oil production, and whether higher energy costs feed into broader inflation through second-round effects, although he noted that such effects have not yet materialized. While much of the recent increase in oil futures prices has been reversed, he warned that markets may still be underestimating the impact of reduced oil supply.Escriva also highlighted the resilience of the Eurozone economy, pointing to stronger than expected demand and solid economic activity. He concluded that the ECB should continue to assess all incoming data at each meeting, carefully weighing both upside and downside risks to inflation before making policy decisions.Yesterday's US-Iran escalation and Trump's remarks triggered a hawkish repricing with traders increasing the chances for a rate hike in July to 40%. After the de-escalation, the probabilities fell slightly to 36% but the hightened risks and the jump in oil prices keeps the hawkish bets alive. This article was written by flfeaa2662d774455a8d50fa77b791ed5f at investinglive.com.