Mexico’s central bank has cut its benchmark interest rate following a split vote, as uncertainty from the US-Israel war on Iran continues to rattle global markets, Al Jazeera reports.

Minutes from the Bank of Mexico’s May meeting show a 3-2 decision, with policymakers warning the conflict is pushing up inflation risks.

All five members have flagged the war as a source of upward pressure on prices, though most said the direct impact on Mexico remains limited.

Officials point to government fuel price controls as a key buffer against rising energy costs linked to the conflict.