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Story summary
- The European Central Bank (ECB) faces a challenging outlook due to a new energy shock from the Middle East, which may require further tightening if prices stay high.
- Brent crude prices exceed $115 per barrel, fueling inflation.
- Cyprus banks are preparing for rate increases, which could bolster profitability despite credit expansion concerns.
- Policymakers warn that a prolonged conflict could trigger an energy crisis, complicating the euro-area economy and ECB decisions.
