ECB's Schnabel Sees Upside Inflation Risks Despite Peace Deal

ECB’s Schnabel Sees Upside Inflation Risks Despite Peace Deal The European Central Bank’s Executive Board member Isabel Schnabel warned that upside risks to inflation could remain, even as a U.S.-Iran peace deal reopens the Strait of Hormuz. Speaking during the Petersberger summer dialogue 2026 in Königswinter, Germany, Schnabel said price pressures may turn out stronger than anticipated. The remarks were delivered Saturday, according to the truncated article text. The message links the inflation outlook to ongoing global factors affecting energy and trade routes, while acknowledging that the diplomatic development is a relevant backdrop. By framing the risk as “upside,” Schnabel’s comments suggest the ECB could face persistence in price dynamics if pressures strengthen.