European and other central banks may raise interest rates this year due to rising oil prices

European Central Bank and other central banks are expected to raise interest rates this year due to rising oil prices. Concerns about resurgent inflation from escalating energy costs, driven by US-Israel and Iran conflict, have led financial markets to anticipate rate hikes from the ECB, Swiss National Bank, and Swedish Riksbank within 2026. Oil futures briefly surpassed $119 per barrel, the highest in 2.5 years, amid fears of prolonged supply cuts and transport disruptions. The Bank of England is projected to shift to rate hikes in 2027.