Borrowing costs climb in Europe and oil tops $105 a barrel as bank flags growing price pressures in eurozone
The European Central Bank has raised interest rates to 2.5% and warned that the risk of higher inflation over the next year has risen following renewed fighting in the Middle East.
It came as the interest rate on government bonds soared on a jump in oil and gas prices overnight after the latest US and Iran attacks on ships in the strait of Hormuz.