The European Central Bank on Thursday became the first major central bank to raise interest rates in response to the Iran war as policymakers around the world including new U.S. Federal Reserve Chair Kevin Warsh wrestle with how to confront the inflation fed by sharply higher oil prices.

The ECB's rate-setting council raised its benchmark rate to 2.25% from 2%, where it had been for a year. The move comes ahead of rate-setting meetings next week at the Fed, the Bank of Japan, and the Bank of England.

Saudi Arabia announced Wednesday the end of a ban it imposed on Lebanese imports five years ago, marking a major step in attempts to rebuild relations between Lebanon and Gulf countries.

The kingdom slapped a ban on Lebanese fruits and vegetables in 2021, saying they were being used to smuggle drugs. In one notable case, Saudi Arabia announced it had seized over 5 million pills of the amphetamine drug Captagon hidden in a shipment of pomegranates coming from Lebanon.

President Donald Trump on Wednesday showed how he had learned to stop worrying about inflation and simply, in his own words, "love" it.

Asked about the new report that the consumer price index in May had jumped 4.2% over the last year, the president took a surprisingly optimistic tack with the challenging news. Trump didn't dismiss the affordability issue as a "hoax" that was started by Democrats, as he has done previously. Nor did he claim that he was bringing down the cost of living.

Consumer prices probably jumped in May for the third straight month, heightening concerns for the inflation fighters at the Federal Reserve and underscoring the threat that rising costs pose for the Trump administration as midterm elections near.

Inflation is expected to reach 4.2% in May from a year earlier when the Labor Department reports last month's figures Wednesday, according to a survey of economists by data provider FactSet The annual increase would be up from the 3.8% reading in April. On a monthly basis, prices are forecast to have risen a hefty 0.5%, slightly below the 0.6% increase in April.

Lebanon launched the rehabilitation of its second airport on Saturday, in preparation for an opening within months, at a time when the country faces constant fighting between Hezbollah and Israel.

A jet carrying Prime Minister Nawaf Salam landed at René Mouawad Airport, where he led the ceremony at the facility in Lebanon’s northwest, close to Syria's border.

The Swiss subsidiary of British bank HSBC has been charged in France as part of an embezzlement probe into former Lebanese central bank chief Riad Salameh, the financial crimes prosecutor's office said Thursday.

Indian Prime Minister Narendra Modi held talks with Venezuela's acting President Delcy Rodriguez on Thursday as New Delhi seeks to deepen ties with the oil-rich South American nation following disruptions in global energy supplies.

Rudrendra Tandon, a senior official in India's foreign ministry, said the talks held in New Delhi focused on strengthening energy cooperation. He said Venezuela had become India's third-largest crude oil supplier in recent weeks.

Year-on-year inflation in Iran reached a level in May unseen since World War II, underlining the economic pain average Iranians face as the Islamic Republic worries about the war with Israel and the United States restarting.

A report Monday by Iran's Central Bank represents the first official acknowledgment of what Iranians shopping, paying for a taxi or visiting a medical clinic already know: The rial currency is battered by the war and uncertainty around it resuming.

European Union officials said Friday that Europeans can expect oil and gas prices to remain above what they were before the Iran war for at least until the end of 2027, with prices of other goods also following an upward trajectory.

EU Economy Commissioner Valdis Dombrovskis said that higher energy prices are primarily responsible for driving inflation to a forecast 3.1% for this year and 2.4% for 2027. That's significantly higher than the earlier forecast for this year of 1.9%.

The European Union's executive commission cut its growth outlook and predicted higher inflation due to sharply higher energy prices from the war in Iran — but said the economy will avoid an outright recession.

"As a net energy importer, the EU's economy is highly susceptible to the energy shock caused by the conflict in the Middle East," the commission said in a statement Thursday. The rising cost of fuel "means higher household bills and surging business costs that reduce profits for many industries."