The European Central Bank is closely monitoring potential second-round effects from the Iran war on inflation and growth, Vice President Luis de Guindos warned in an interview. De Guindos emphasized that while monetary policy cannot prevent initial impacts, the ECB stands ready to respond as necessary to prevent broader economic fallout.

Speaking to El Mundo newspaper, de Guindos highlighted that the next Governing Council meeting in April will be crucial for assessing the conflict's impact. The Iran war has emerged as the main source of uncertainty for the eurozone economy, with policymakers needing more data before making decisions. Germany's Joachim Nagel and Ireland's Gabriel Makhlouf have suggested potential interest rate hikes may be needed.

The timing adds complexity as de Guindos's eight-year term ends in May, leaving Spain without representation on the Executive Board until at least next year. With three seats including President Christine Lagarde's becoming vacant, speculation continues about potential successors, though de Guindos remained noncommittal about Spain's chances for the top position.