Tensions with Iran Send Markets Reeling

The Canadian and U.S. stock markets took a hit on Monday as tensions between the two countries and Iran escalated.

U.S. forces launched their first military action in over a month against Iran, striking Iranian rocket launchers on the Strait of Hormuz, while the United Arab Emirates intercepted an Iranian drone over its waters.

This aggressive move has pushed oil prices higher, with the October crude oil contract rising to US$85.76 per barrel, up US$2.36 from Friday's close.

Anish Chopra, managing director of Portfolio Management Corp., attributed the surge in oil prices to the renewed tensions between the U.S. and Iran, which he said would feed into inflation expectations and interest rate expectations.