European Central Bank's Mersch: Even if a deal is reached between the EU and the UK, price pressures will continue.

European Central Bank Executive Board member Gabriel Makhlouf believes that the peace agreement between the US and Iran will not quickly reverse the inflation trend in the euro area. The Irish central bank governor said in Dublin on Tuesday, "The end of the conflict does not mean that market shocks will immediately disappear. The time required for supply chains to return to normal and for energy prices to adjust still needs to be observed." Makhlouf's views are consistent with those of other policy makers at the European Central Bank. Earlier, the US and Iran announced a temporary agreement and the reopening of the Strait of Hormuz for navigation, leading to a sharp drop in energy prices. However, central bank officials continue to defend last week's rate hike and warn that inflation pressures will not dissipate. He pointed out, "War has caused damage to infrastructure, and the recovery of oil production capacity may be delayed, so the pressure directly pushing up prices may be difficult to ease quickly. In addition, the situation of navigation in the Strait of Hormuz remains uncertain, which is also a major variable."