European Central Bank Governing Council member Madis Muller stated he cannot exclude raising borrowing costs in April if elevated oil and natural gas prices persist due to the ongoing Iran conflict. This signals potential policy tightening beyond the current rate hold, as sustained energy price pressures could force the ECB to act. Muller's comments follow recent spikes in Brent crude above $90 per barrel, driven by Middle East tensions.

The ECB has maintained rates at 4.5% since July 2023 but faces mounting inflation risks from energy costs.