Europe is facing a squeeze from two directions: more expensive energy and higher borrowing costs intended to contain the inflation that the same energy shock created.
The European Central Bank raised its key three interest rates by 0.25% on Thursday, bringing the deposit rate to 2.5%.
It is the second rate hike in three months, and the reason is visible on every forecourt in Europe.
Brent crude climbed back above $100 a barrel on Wednesday as the conflict between the United States and Iran continued to disrupt traffic through the Strait of Hormuz.
The pressure is arguably sharper in gas, where the Dutch TTF benchmark, the reference price for the European market, has rallied by 190% since the start of the year.
