Approximately half of Canadian firms surveyed by the Bank of Canada plan to pass on cost increases from the Iran war and trade tariffs to customers over the next 12 months.

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In October 2026, the United States refrained from military strikes on Iran, relying instead on a naval blockade of Iranian ports and sanctions against Iranian shipping networks

The United States and Israel launched a war against Iran on February 28, 2026

India and the United States reached an interim trade agreement in February 2026 to reduce tariffs, but progress paused after the U.S. Supreme Court struck down U.S. President Donald Trump's tariffs

Financial strain from the U.S. blockade has forced the Iranian regime to withhold salaries, pensions, and benefits across energy, manufacturing, construction, and security sectors.

U.S. Central Command chief Adm. Brad Cooper stated that a U.S. naval blockade has prevented Iran from exporting at least $25 billion worth of crude oil.

U.S. President Donald Trump signed an executive order on October 16, 2026, waiving sweeping sanctions and tariffs on Russia that were set to take effect on October 18, 2026.

The Lindsey O. Graham Act would have imposed tariffs of up to 100 percent on imports from the five largest buyers of Russian crude oil or gas.

Bank of Canada surveys released on October 19, 2026, showed rising inflation expectations driven by trade tensions, input costs, tariffs, and Middle East conflict pressures on energy.

A Bank of Canada survey of approximately 340 business leaders in September 2026 found that Canadian business sentiment deteriorated after trade talks with the U.S. broke down on August 21, 2026.

Elevated U.S. tariffs pushed Chinese exporters to direct more goods toward Southeast Asia, Latin America, and Europe in 2026.

Global energy costs and oil prices soared following the February 2026 launch of a war on Iran by the United States and Israel, creating inflationary pressures on low-income importing nations.

U.S. President Donald Trump signed an executive order waiving key sanctions and tariffs on Russian goods and energy purchases scheduled under the Graham Act.

Countries should impose carbon tariffs on imports from countries with weaker emissions rules

President Donald Trump temporarily paused tariffs and sanctions under the Lindsey O. Graham Act in October 2026, allowing a 60-day period to analyze economic impacts on allies like India.

Special Bank of Canada consultations in July and August 2026 found Canadian firms adapting to trade tensions by modifying supply chains, increasing technology spending, and diversifying export markets.

The Bank of Canada reported that despite post-talk deterioration, business sentiment and expectations remained considerably stronger than during the peak of trade tensions in 2025.

The collapse of Canada-U.S. trade negotiations on August 21, 2026, was followed by a 50% U.S. tariff on approximately $28 billion of Canadian goods and planned Canadian retaliatory counter-tariffs.

International Monetary Fund Managing Director Kristalina Georgieva warned that high inflation acts as a tax on the poor and that war spillovers threaten energy and food security in low-income nations.

Broad escalation in Middle East hostilities following United States and Israeli strikes on Iran in February 2026 forced the postponement or cancellation of multiple regional events, including cycling championships and diplomatic summits

In the first part of 2026, several conferences were cancelled, postponed, or retooled in the United Arab Emirates and Qatar when those countries bore the brunt of attacks linked to the US-Israeli war with Iran