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Ottawa's Parliament Hill, where the Carney government is rolling out Canada's largest fiscal stimulus package since 1980. / Photo: Unsplash. MoneySavings.ca  ·  Economy & Policy Monday, April 13, 2026  ·  Daily Edition Canada at a crossroads: oil shock, frozen rates, and a trade deal on the clock Canada's economy is navigating a uniquely complicated moment in 2026. A Middle East conflict has sent oil prices surging past US$104 a barrel, a once-in-a-generation fiscal stimulus package is being rolled out in Ottawa, and the clock is ticking on a renegotiation of Canada's most important trade agreement. For everyday Canadians, this means uncertainty at the gas pump, a central bank with limited room to cut rates, and a federal government betting big on public spending to kick-start growth. Here is what you need to know about the forces shaping the Canadian economy right now. 1. The Bank of Canada is stuck — and oil is why The Bank of Canada has held it...

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Standoff Deepens as Iran Rejects U.S. Peace Plan and Oil Markets React

 

              A drone view shows the impact site following Iranian missile barrages near Eshtaol, Israel .                

Iran has sharply rejected recent U.S. peace proposals as unrealistic and excessive, while renewed missile strikes across the region have pushed oil prices higher. The escalating tensions underscore how far both sides remain from a ceasefire, with Iran insisting on its own conditions and the U.S. signaling readiness to intensify pressure. 

Rising Tensions and Diplomatic Deadlock

  • Iranian officials have dismissed U.S. proposals to end the conflict as “unrealistic, illogical, and excessive.”
  • Tehran continues to deny any direct negotiations, despite Washington’s claims of ongoing discussions through intermediaries.
  • Iran maintains its own ceasefire conditions, including guarantees against future attacks and compensation for war damages. 

Military Escalation Across the Region

  • Missile and drone strikes have intensified, with Iran continuing attacks on Israel and Gulf states.
  • The U.S. has warned it may escalate operations if Iran does not engage constructively.
  • The conflict has disrupted critical infrastructure, including energy facilities and transport routes. 

Oil Prices Surge Amid Uncertainty

  • With the Strait of Hormuz effectively shuttered and regional facilities under threat, global oil markets have reacted sharply.
  • Brent crude has hovered around the $100 mark as traders weigh the likelihood of a prolonged conflict.
  • The supply shock has raised concerns about inflation and broader economic instability. 

Outlook

The widening gap between U.S. demands and Iran’s conditions suggests that a diplomatic breakthrough remains distant. As missile strikes continue and energy markets tighten, the geopolitical and economic stakes are rising rapidly.

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