The European Central Bank is widely expected to raise interest rates due to ongoing economic pressures. Eurozone inflation is at 3.3%, significantly above its target rate. This rise in inflation, along with energy inflation at 14.3%, has pushed European bond yields to multi-decade highs. The current oil price is over $100, partly driven by the ongoing Middle East conflict between Iran and the US, where several American planes were damaged by Iranian missiles. The economic strain is not limited to Europe; Japan's central banker warned that the country may need to raise rates to its highest level in 30 years at an upcoming meeting. The US also faces inflationary pressures and high debt loads, causing the largest ever gap between US and Chinese government borrowing costs.