A new global interest-rate tightening cycle is coming into view as major central banks respond to inflation risks linked to higher oil and gas costs from the Iran war. The Bank of Japan raised rates on Friday after increases by the Federal Reserve two days earlier and the European Central Bank the previous week. The Bank of England held rates but said prolonged conflict could require further action. Policymakers are facing market pressure to contain inflation expectations and long-term bond yields, which have reached multidecade highs. The ECB said energy prices are expected to remain elevated for longer and that persistent inflation could weaken household incomes, consumer behavior and GDP. Two sources said further ECB tightening was under consideration, with a December move more likely than October and a hike above 3% not ruled out. The Federal Reserve's unanimous increase and projections showing 16 of 18 policymakers expect at least one more quarter-point hike this year reinforced expectations of further tightening. Markets later priced almost four quarter-point Bank of England increases over the following year, despite some analysts expecting only one hike.