According to Escriva, why do ECB policymakers still see energy supply risks despite the US-Iran deal and falling oil prices?

Escriva stated that 'it’s not certain markets are capable of capturing sufficiently the disruptions that have occurred in the supply, the dimension that it’s going to have and the time that it’s going to take to restore production,' adding that this uncertainty is 'still doubtful, and an element that’s going to be with us for a certain time.'

What does Escriva’s statement imply about the ECB’s likely monetary policy stance following the Strait of Hormuz agreement?

Escriva’s warning that energy supply disruptions will persist 'for a certain time' underscores why policymakers in Frankfurt 'don’t consider the danger to be over' and remain 'expected to raise interest rates further,' despite the US-Iranian pact lowering oil prices and signaling an end to the conflict.

ECB’s Escriva Says Energy Disruption Will Persist Despite Deal

Jun 16, 2026

ECB Governing Council member Escriva warned that energy supply disruptions will persist despite a US-Iranian deal to reopen the Strait of Hormuz. Consequently, policymakers anticipate further interest rate hikes due to ongoing market uncertainties.

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