Stocks slump and oil prices leap as war in the Middle East raises worries about high inflation
BNN Bloomberg
Oil prices climbed, and stock markets slumped Monday as investors and households got the first chance to see what the war in the Middle East could mean for their finances.
Crude prices jumped more than six per cent, which will likely translate into higher prices at gasoline pumps, because of fears that a widening war could slow the global flow of oil. More expensive fuel will also hit many U.S. companies, and sinking stocks for airlines, cruise lines and others helped drag the U.S. stock market lower.
The S&P 500 fell 0.8 eight per cent. The Dow Jones Industrial Average was down 495 points, or one per cent, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.7 per cent lower.
Prices shot up for natural gas, meanwhile, which could mean higher heating bills for the remainder of the winter, after a major supplier of liquefied natural gas to Europe said it would stop production because of the war. Gold climbed 2.2 per cent as investors looked for safer things to own and as U.S. officials tried to persuade the world that this war will not last forever.
“This is not Iraq,” U.S. Defence Secretary Pete Hegseth said Monday. “This is not endless.”
Typically, Treasury yields also fall when investors are feeling nervous. But yields instead climbed, in part because higher oil prices will put upward pressure on inflation, which is already higher than most everyone would like. That could tie the Federal Reserve’s hands and keep it from cutting interest rates.
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
The Trump administration this week stepped up its ambitious effort to replace about US$1.6 trillion in lost tariff revenue that was eliminated by the U.S. Supreme Court’s decision to strike down a range of the president’s import taxes.
The Bank of Canada will be balancing a last-minute flood of economic data with uncertainty around trade and war in the Middle East as it prepares to make its second interest rate decision of 2026 this week.
The Trump administration has expanded its trade investigations to 60 countries, including Canada, in an effort to shore up the president’s tariff policies.
Canada has committed to supplying 23.6 million barrels of oil as part of a larger International Energy Agency plan to help stabilize energy markets as the war in the Middle East continues.
Canada’s energy-heavy index may cushion stocks from oil shocks, but rising crude prices could boost inflation and pressure consumers.
Venture Global will proceed with phase 2 of its CP2 liquefied natural gas project in Louisiana, the company said on Friday.
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
Telus Corp.’s global IT and customer services arm says it’s investigating a breach of its systems.
When Jensen Huang strides onto the stage of a packed hockey arena to kick off Nvidia’s annual developer conference on Monday, he is likely to reveal products and partnerships geared toward keeping the AI chipmaker atop a growing array of competitors.
The current Canada Revenue Agency (CRA) crackdown on Canada’s growing army of gig workers has gone beyond Uber drivers, contractors, consultants, handy-people and freelancers.
The U.S. Trade Representative’s office said late on Thursday it had begun Section 301 unfair trade practices probes of 60 economies in relation to what it called failures to take action on forced labor.