Norway’s central bank raised its policy rate Thursday, while Sweden’s Riksbank held rates at 1.75% but signaled that it would likely tighten policy before year-end if its inflation and economic outlook remains unchanged. Both central banks warned that higher fuel prices linked to the Middle East conflict could slow the return of inflation to their 2% targets and feed into wages, other prices and inflation expectations. Norway’s Governor Ida Wolden Bache said the policy rate may need to remain elevated and could rise further if necessary. Investors expect another Norwegian rate increase and four Swedish hikes by the end of spring. Denmark’s central bank has already moved, while the Swiss National Bank kept its rate at zero despite raising near-term inflation forecasts. Global bond markets also reflected growing inflation concerns, with investors demanding the highest yields in two decades to hold long-dated government debt. A stronger-than-expected U.S. business survey added to expectations that the Federal Reserve could raise short-term rates further, as easy fiscal policy and artificial-intelligence investment supported economic activity.