The European Central Bank is heading for an interest-rate increase next month unless a sustainable peace deal between the US and Iran can be found, according to Governing Council member Martin Kocher.

HSBC warns central banks will raise rates amid US-Iran supply shocks, with ECB and BoE hikes expected in June-July 2026 as oil tops $126 per barrel.

The European Central Bank is heading for an interest-rate increase next month unless a sustainable peace deal between the US and Iran can be found, according to Governing Council…