Pablo Hernández de Cos, one of two candidates to replace Christine Lagarde as European Central Bank president, warned that prolonged energy price pressures linked to the Iran war could threaten efforts to control inflation. In an interview published Saturday by Swiss newspaper Tagesanzeiger, the former Spanish central bank governor said higher energy costs had not yet produced widespread increases in wages or other prices, but urged policymakers to watch for second-round effects. Euro-area inflation is running at roughly twice the ECB’s 2% target, while expectations that the conflict would end quickly and ease energy prices have not been fulfilled. De Cos said any further interest-rate increases should be guided by incoming economic data rather than assumptions about future energy-market developments. He also warned about large budget deficits across Europe as high public debt and elevated borrowing costs increase debt-servicing pressures, with France drawing particular investor concern. De Cos, who now heads the Bank for International Settlements, is competing with former Dutch central bank chief Klaas Knot. Euro-area finance ministers are scheduled to assess the candidates on Monday, while European leaders will make the final appointment at meetings that include an informal summit on November 13 and a special gathering on November 26 and 27.