Oil Near $100, U.S.-Iran Conflict Escalates, and Trade War with Canada Intensifies
Global markets react as the U.S.-Iran conflict escalates with naval engagements pushing oil near $100 a barrel, while a severe trade dispute intensifies between Washington and Ottawa.
Newsnibs Staff
- 2026-09-09
- Updated 9:39 AM UTC
Global markets reacted sharply as a six-month conflict between the United States and Iran escalated into direct naval engagements, pushing Brent crude futures near the $100 a barrel threshold. U.S. Central Command stated that American forces destroyed five Iranian crude oil tankers in the Gulf of Oman and the Strait of Hormuz. The military action followed two ballistic missile attacks on a U.S. warship by Iran's Revolutionary Guard over the preceding two days.
The destroyed vessels included the Kivik, Charminar, Horizon 1, Riesco, and Derya, though crews had been ordered to abandon ship prior to the strikes. Speaking from Colombia during a Latin American tour, U.S. Secretary of State Marco Rubio warned Tehran that it will lose tankers if naval vessels remain targeted. Iran's Islamic Revolutionary Guard Corps asserted responsibility for launching separate missile salvos toward U.S. targets in Jordan.
Jordanian officials and state media reported that their armed forces intercepted incoming missiles, preventing widespread damage with only two projectiles landing in unpopulated areas. While Iranian state-run media claimed the strikes successfully hit a U.S. base, Jordanian authorities disputed that characterization. U.S. Central Command stated it had no information regarding successful impacts on the base.
Economic strains extended beyond the Middle East as a trade dispute between Washington and Ottawa intensified. U.S. President Donald Trump signed orders banning Canadian imports of alcoholic beverages, dairy, and motorcycles, alongside blocking Canadian products from government contracts. In response, Canadian Prime Minister Mark Carney announced retaliatory tariffs on approximately $20 billion worth of U.S. goods, including steel, aluminum, and cheese, while signaling an intent to diversify trade networks.
As financial markets absorbed the overlapping shocks, the Japanese yen strengthened to 152.89 against the dollar, reaching its strongest level since February. U.S. Treasury yields sat just below 5% while stock futures remained largely stable. Elsewhere, Rubio secured a deal granting the United States control over roughly one-fifth of Venezuela's oil reserves.
Photo by Anastasios Antoniadis on Unsplash