European Central Bank Governing Council member Jose Luis Escriva cautioned that energy supply disruptions will linger even after the US‑Iranian pact to reopen the Strait of Hormuz. The deal eased geopolitical tension, nudging oil prices lower, yet Frankfurt officials see no end to the risk.

Escriva warned that markets may not fully capture the scale and duration of the supply gap, calling uncertainty "doubtful" and a lingering element. Investors now factor in a potential slowdown in production that could keep prices higher than expected. The ECB is expected to raise interest rates again, tightening liquidity.

The Strait deal has already pushed Brent crude below $80 a barrel, but the ECB signals that supply constraints will persist for months. Higher rates could dampen corporate earnings, especially in energy‑heavy sectors. Market participants will watch closely how the central bank balances inflation control with the risk of a prolonged oil supply shock today.

Policymakers in Frankfurt now face a delicate trade‑off: tightening to curb inflation while not stoking a deeper energy crisis that could hurt growth. The ECB’s stance underscores that geopolitical moves alone cannot erase market volatility. Investors should adjust exposure to commodities and rate‑sensitive stocks accordingly.