Francois Villeroy de Galhau, a member of the European Central Bank Governing Council, emphasized Tuesday that energy prices alone won’t dictate upcoming interest rate decisions. Speaking in Paris, he warned against premature speculation about rate hikes, urging patience ahead of the ECB’s next meeting in two weeks. Oil and natural gas prices have surged amid escalating tensions between the US, Israel, and Iran, with Tehran threatening to block the Strait of Hormuz. Villeroy clarified that while energy costs are a factor, the council will weigh broader economic data before acting. France’s exposure to Middle East volatility remains limited, he noted, though global uncertainty could still ripple through markets.

The ECB’s cautious approach underscores its commitment to data-driven policy, even as geopolitical risks loom. Investors should monitor upcoming forecasts for clarity on potential rate adjustments.