New US-Iran strikes threaten fragile ceasefire

The US and Iran exchanged fire, straining an already fragile ceasefire and pushing oil prices up. US President Donald Trump said Iran would 'pay the price' for not making a deal, while Tehran declared the Strait of Hormuz closed and hit two oil tankers. Rising oil prices drove inflation and monetary policy adjustments, with markets expecting rate hikes from the European Central Bank and Federal Reserve.