European Central Bank President Christine Lagarde pledged the institution will prevent the conflict in Iran from triggering the same inflationary shock that followed Russia's invasion of Ukraine. Speaking after the ECB's latest policy meeting, Lagarde emphasized the central bank's readiness to act decisively to shield the euro zone economy from energy-driven price spikes.

Last year's surge in energy costs after Russia's attack on Ukraine sent inflation to record highs across Europe, forcing the ECB to implement its most aggressive rate-hiking cycle in history. The bank raised rates by 450 basis points to combat price pressures that peaked above 10% in some member states. Lagarde's warning comes as tensions escalate in the Middle East, raising concerns about potential disruptions to global oil supplies.

The ECB's commitment to preventing a repeat of last year's inflation crisis signals continued vigilance over energy markets. With oil prices already volatile amid Middle East tensions, Lagarde's statement serves as both reassurance to markets and a warning that the central bank stands ready to use all available tools to maintain price stability.