GLOBAL MARKETS SLIP AS IRAN SANCTIONS AND CANADA TRADE WAR LOOM

Developing story: Market prices and sanctions details may change after the U.S. Treasury announcement and later trading sessions.

Global stocks slipped Monday and oil prices eased as investors waited for details of expected U.S. sanctions on Iran while also weighing the growing risk of a U.S.-Canada trade war. Reuters reported that oil futures were down around 2 percent ahead of Treasury Secretary Scott Bessent’s planned announcement, while the Canadian dollar weakened after Prime Minister Mark Carney said Canada would retaliate against U.S. tariffs. The market moves captured a broader mood: investors are trying to assess several major risks at once, none of which has a clear endpoint.

The Iran sanctions are the most immediate geopolitical variable. Washington is preparing broader measures aimed at Tehran and its trading partners, and Iran has warned of a harsh response. Energy traders are watching whether the sanctions will affect shipping, insurance, refinery purchases or the Strait of Hormuz, a waterway central to global oil and liquefied natural gas flows. Monday’s decline in oil did not necessarily signal reduced risk. It reflected positioning before the announcement and profit-taking after earlier gains, while leaving open the possibility of a sharp reversal if sanctions trigger retaliation.

The Canada-U.S. dispute added a second front. The United States has imposed 50 percent tariffs on about $20 billion worth of Canadian goods, and Canada plans retaliatory duties beginning September 8. The Canadian dollar weakened against the U.S. dollar as investors marked down the outlook for trade stability. Tariffs can affect currency markets because they threaten exports, growth and corporate earnings. Canada is especially exposed because of its reliance on the U.S. market, but American companies also depend on Canadian inputs, energy, metals and consumer demand.

Technology stocks were another source of caution. Investors are preparing for Nvidia’s earnings report Wednesday, with expectations high after the artificial-intelligence boom drove gains across chip and infrastructure names. Reuters reported that analysts were looking for quarterly revenue to nearly double to around $92 billion. Those expectations create risk: even strong results may disappoint if they fail to justify valuations. Asian technology shares were already under pressure, with Alibaba sliding after a large Hong Kong share offering and Samsung Electronics falling after a shareholder-return plan failed to satisfy investors.

U.S. markets were also looking ahead to Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole on Friday. Traders hope for guidance on interest rates, but analysts warned that Warsh may avoid signaling near-term decisions. Markets priced a meaningful chance of a rate hike in September and a move fully by December, according to Reuters. Inflation data due this week could alter those probabilities. The Fed’s challenge is complicated by tariffs, energy risk and financial-market volatility, all of which can affect inflation expectations and borrowing costs.

Bond markets remain sensitive after Treasury Secretary Bessent announced larger buybacks intended to restrain long-term yields. Reuters reported that 30-year yields remained near recent multiyear highs despite the effort. High long-term yields tighten financial conditions by raising mortgage rates, corporate borrowing costs and government debt-service expenses. If sanctions or tariffs push inflation expectations higher, bond investors may demand still higher compensation. That would complicate the Fed’s job and limit fiscal room for governments already facing large deficits.

Gold rose Monday, reinforcing its role as a haven during periods of geopolitical and monetary uncertainty. Reuters reported that gold gained as investors balanced Iran risk, tariff tensions and the dollar’s movements. Gold’s rise alongside falling oil and cautious equities shows that markets are not trading a single story. Some investors expect economic slowing or policy stress; others fear inflation from energy or tariffs; still others are protecting portfolios against shocks. The result is a fragmented market environment where traditional correlations can shift quickly.

European stocks edged higher in parts of Monday trading, but the gains were modest and vulnerable to reversal. Europe is exposed to all three main risks: energy disruption from the Iran conflict, weaker global demand if trade wars spread, and technology repricing if the AI trade stumbles. The euro dipped against the dollar, while sterling also eased after a strong rally. European investors are also watching Ukraine, where the EU approved new defence funding and Britain urged more air defence support. Security spending can support some industrial sectors but also strain public finances.

The Associated Press reported that U.S. stocks were softer early Monday, with technology leading losses. The S&P 500 and Nasdaq were under pressure as investors questioned whether AI enthusiasm had moved too far ahead of earnings. That skepticism does not mean the AI investment cycle is over. It means markets now want proof that large capital spending can generate durable profits. Nvidia’s results, along with guidance from other enterprise-software and cybersecurity firms, will help determine whether the sector remains a market engine or becomes a source of volatility.

The week ahead could therefore test several assumptions at once. Investors must absorb the U.S. sanctions package, any Iranian response, Canadian tariff retaliation planning, inflation data, Jackson Hole commentary and major technology earnings. Any one of those events could move markets; together they create a dense risk calendar. For now, the market message is caution rather than panic. Stocks slipped, oil eased, gold rose and currencies moved defensively, reflecting a world in which economic wars, trade wars and actual wars increasingly overlap. Fact-check date: August 24, 2026. Article type: News. Sources: Reuters; Associated Press. Developing note: Market prices and sanctions details may change after the U.S. Treasury announcement and later trading sessions.