[ECB's Nagel: If Iran war drives inflation higher, ECB will take action] European Central Bank (ECB) policymaker Joachim Nagel told Reuters that if the Iran war leads to a rise in fuel prices and persistently drives up inflation in the Eurozone, the ECB will act swiftly and decisively. Investors once bet that central banks might be forced to resume tightening policies: on Monday, the market briefly priced in two rate hikes by the ECB, but these bets cooled after U.S. President Donald Trump stated that the conflict was 'essentially over.' Nagel, who heads Germany's central bank, said Trump's remarks brought 'hope,' but the surge in energy prices has worsened the economic outlook and heightened inflation risks. 'We must remain highly vigilant,' Nagel said in an email comment. 'If the current rise in energy prices clearly translates into broader consumer price inflation in the medium term, the ECB Governing Council will act in a timely and decisive manner.'