Christine Lagarde: "“the energy shock could intensify further”"

European Central Bank President Christine Lagarde cautioned that rising energy costs could worsen, potentially driving up inflation and raising the possibility of an interest-rate increase in the eurozone this September. Her comment followed a sharp escalation in the Persian Gulf, where Houthi rebels based in Yemen struck Saudi oil tankers in the Red Sea, sending Brent crude above $100 a barrel for the first time since May. President Donald Trump blamed Iran for the attacks and promised a “major military punishment,” while Iran’s military said it would keep retaliating against U.S. strikes. United Nations Secretary-General António Guterres described the situation as spiraling beyond control. The renewed conflict, which resumed after a brief ceasefire, has disrupted shipping through the strategic Strait of Hormuz and threatens global energy markets.