Oil Prices Plummet as Tensions Ease in Middle East

The world's supply of oil is facing new pressures after Iran-backed Houthis in Yemen attacked ships in the Bab el-Mandeb Strait, a key gateway to the Red Sea and Suez Canal. The group has also imposed a naval blockade on Saudi Arabia, which had been diverting its oil via pipeline to the Red Sea to get around Iran's closing of the Strait of Hormuz.

Oil prices surged due to the deepening conflict in the Middle East, but fell on Monday after news that the US and Iran would pause hostilities. The US Treasury yields also climbed, raising fears that inflation pain contained in the bond market could spill over into stocks.

The Bank of Canada is also facing challenges as it tries to maintain price stability with its benchmark interest rate. The bank has shared new research on how forces such as artificial intelligence and natural disasters can complicate monetary policy. Investors are focused on oil prices, jobs numbers, and consumer demand when judging the path for lending rates.

Magna International Inc., an Ontario auto parts giant, is bucking the trend of companies struggling with trade wars. The company's share price has more than doubled from its recent low 15 months ago, making it a 'delightfully neutral place' among trading nations.