$100 Oil Prices Spark Global Economic Tensions

The global economy is locked in a cycle of tit-for-tat retaliation as tensions rise between the US, Iran, and Canada.

In response to the destruction of several oil tankers by the US, Iran attacked American bases on Wednesday, while Houthi rebels launched attacks on energy facilities and cities in Saudi Arabia on Tuesday.

The Strait of Hormuz has seen a significant slowdown in traffic as winter months approach for major economies. Meanwhile, the US has imposed bans on some Canadian imports, including alcoholic beverages, motorcycles, and dairy products, in retaliation to Canada's 'dollar-for-dollar' response to US tariffs.

The global market is bracing for further escalation of the trade war, with several countries watching closely for another round of US tariffs. The geopolitical noise has driven up long-term borrowing rates, which could lead to higher inflation and interest rates in the coming weeks.