Christine Lagarde confirmed that the EU is preparing a measured response to the energy shock triggered by the conflict in Iran.Rising oil and gas prices prompted by the closure of the Strait of Hormuz have raised concerns about inflation and potential rate hikes.Philip Lane presented scenarios where inflation could peak at six percent if oil prices exceed one hundred and sixty dollars per barrel.Policymakers held interest rates steady at two percent but suggested that borrowing costs might increase as early as next month.