Jose Luis Escrivá warned the European Central Bank must monitor how the Middle East conflict drives oil prices higher and could ripple into wages.

The spike in commodity costs strains household budgets across the eurozone, tightening purchasing power and potentially forcing employers to raise pay to retain staff. If wage growth outpaces inflation, ECB policy could shift.

Investors track this cue as it signals possible tightening of monetary policy and higher borrowing costs. Companies with thin margins may face cost‑pressure, while financial markets could see volatility in bond yields.

ECB officials will likely adjust policy tools to keep inflation near 2% while safeguarding employment growth, a balance that could reshape euro‑zone economic forecasts.