The unexpected rapid decline in oil prices has eased the European Central Bank’s short-term interest rate hike pressure.

Golden Ten Data, June 30—According to four sources directly familiar with the discussions, energy prices unexpectedly fell rapidly over the past week, further easing the pressure on European Central Bank policymakers to raise rates next month. However, the justification for a small rate hike in the future remains firm. The European Central Bank raised rates this month to prevent the surge in oil prices caused by the Iran war from driving up market inflation expectations, and officials are now discussing the urgency of subsequent hikes. The sources said that the speed of the oil price decline surprised them, as futures prices for several key periods are now even below the “relatively moderate” rate hike scenario previously forecast by the European Central Bank. Earlier concerns about shortages of aviation fuel and other goods have proved unnecessary, as some oil-producing countries, especially Saudi Arabia, have exceeded expected energy output to ensure market supply. The sources added that even amid last weekend’s escalation of tensions between Iran and the US, oil prices did not react strongly, indicating that the normalization process in energy markets is already underway.