Governing Council member Pierre Wunsch stated the European Central Bank would likely raise interest rates if the Iran war remains unresolved by June, according to Bloomberg Markets. This potential policy shift underscores the central bank's heightened sensitivity to geopolitical instability's economic repercussions. Wunsch emphasized the need for continued monitoring as officials assess the conflict's full impact on inflation and growth projections. Rate hike consideration now hinges on the war's duration, creating market uncertainty around ECB policy timelines. Iran war duration directly influences ECB decisions, making the conflict's resolution timeline a critical factor for investors.