The European Central Bank (ECB) keeps its key interest rates unchanged, pausing after its June increase and citing the need to monitor inflation dynamics. Multiple outlets report the ECB maintains its policy rate at 2.25%, leaving the door open to further tightening later. The ECB says it is closely monitoring the inflationary impact of renewed fighting linked to the war involving Iran. Sources agree that the renewed conflict contributes to higher energy prices, which can feed into broader inflation. This energy-price shock is described as pushing inflation levels above the ECB’s targets, increasing uncertainty around the timing and likelihood of any additional rate hike. While easing inflation earlier provided some room for policymakers to hold, the risk from Middle East-related energy costs is cited as keeping another increase “on the table” for the autumn. Overall, the ECB’s decision reflects a balance between a temporary pause in rate changes and heightened attention to how geopolitical developments could affect prices in coming months.