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Bank of Canada Holds the Line as Global Turmoil Clouds Outlook

  Bank of Canada Governor Tiff Macklem takes part in a press conference in Ottawa on September 17, 2025 The Bank of Canada has opted to keep its key interest rate steady at 2.25%, a decision that reflects the delicate balancing act policymakers face as global uncertainty intensifies. With inflationary pressures rising and economic growth showing signs of strain, the central bank is navigating a narrow path shaped by forces largely outside its control. A major driver of the current tension is the surge in oil prices triggered by ongoing geopolitical conflict. Higher energy costs are feeding into broader inflation, raising concerns that price pressures could become more persistent. At the same time, elevated borrowing costs and weakening consumer confidence are weighing on domestic economic momentum. By holding the rate, the Bank of Canada signals caution: it aims to avoid stifling growth while still keeping inflation expectations anchored. The central bank emphasized that it rema...
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Markets Waver as U.S. Strike on Iran Sparks Oil Volatility

Global financial markets opened the week on uncertain footing after the United States launched airstrikes on three Iranian nuclear and military sites, escalating tensions in the Middle East. The move, part of the ongoing conflict between Israel and Iran, sent oil prices on a rollercoaster ride and left investors weighing the potential fallout.

Brent crude surged as much as 3.9% to $80 a barrel before settling slightly lower, while U.S. crude climbed 4.3% to $77. The initial spike reflected fears of supply disruptions, particularly through the Strait of Hormuz—a critical chokepoint for global oil shipments. However, analysts noted that Iran is unlikely to block the strait entirely, as it relies on the route to export its own oil.

U.S. stock futures dipped modestly, with the S&P 500 and Dow Jones Industrial Average both slipping around 0.4%. European and Asian markets also posted mild losses, suggesting that while investors are cautious, they are not panicking. Treasury yields remained largely unchanged, indicating a wait-and-see approach.

The big question now is how Iran will respond. A restrained reaction could calm markets, while a more aggressive stance might reignite volatility. As one analyst put it, “The situation remains highly fluid,” and for now, markets are bracing for the next move.

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