How the war in the Middle East could fuel inflation in Canada
Iran's threat to block the Strait of Hormuz, one of the most important shipping routes, could influence inflation numbers globally. Adrian Ghobrial explains.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
20 minutes ago
- Globe and Mail
Fed's Powell heads to Senate panel for second day of testimony
U.S. Federal Reserve Chair Jerome Powell resumes two days of Congressional testimony on Wednesday when he appears before the Senate Banking committee after scrutiny before a House panel the day before that focused on the Fed's concerns the Trump administration's tariff plans will raise inflation. The Senate session begins at 10 a.m. with Powell expected to deliver the same message he presented to the House Financial Services Committee that even with recent inflation more moderate than expected, the central bank expects rising import taxes will lead to higher inflation beginning this summer. He is also expected to reiterate that the Fed won't be comfortable cutting interest rates until it sees if prices do begin to rise and whether that process shows signs of becoming more persistent. 'We should start to see this over the summer, in the June number and the July we don't we are perfectly open to the idea that the pass-through (to consumers) will be less than we think, and if we do that will matter for policy,' Powell said on Tuesday. 'I think if it turns out that inflation pressures remain contained we will get to a place where we cut rates sooner than later...I do not want to point to a particular meeting. I don't think we need to be in any rush,' particularly given a still-strong labor market and so much uncertainty about the impact of the still-unresolved tariff debate. U.S. Federal Reserve should consider cutting rates as soon as July, governor says Tariffs have already risen on some goods, but there is a coming July 9 deadline for higher levies on a broad set of countries – with no certainty about whether the Trump administration will back down to a 10 per cent baseline tariff that analysts are using as a minimum, or impose something more aggressive. The Fed has held its benchmark interest rate steady in the 4.25 per cent to 4.5 per cent range since December, despite demands by President Donald Trump for immediate, and deep, rate cuts. Economic projections released by the Fed last week showed policymakers at the median do anticipate reducing the benchmark overnight rate half a percentage point by the end of the year. But within those projections is a clear divide between officials who take the inflation risk more seriously – seven of 19 policy makers see no rate cuts at all this year – and those who feel any tariff price shock will be less severe or quickly fade. Ten of the 19 see two or more rate reductions. Investors currently expect the Fed to cut rates at its September and December meetings, but hold rates steady at its next meeting on July 29-30.
Globe and Mail
23 minutes ago
- Globe and Mail
Arctic Ice Secures 20-Year Greenland Extraction License Amid Global Water Resource Shifts
Arctic Ice secures a 20-year exclusive license to extract glacial water from Greenland, advancing a sustainable global distribution strategy. Dubai, United Arab Emirates--(Newsfile Corp. - June 25, 2025) - Arctic Ice has finalized a 20-year exclusive license agreement with the Government of Greenland, granting access to extract up to 10 billion liters of untouched glacial water annually. This agreement establishes long-term resource security and signals a strategic development in global water infrastructure as concerns around scarcity, environmental degradation, and cross-border access continue to grow. To view an enhanced version of this graphic, please visit: The glacial water sourced under this agreement originates from Greenland's ancient ice formations, which remain insulated from industrial contamination. Arctic Ice will channel this reserve into its premium water brand, Inua, which is built on a decentralized, asset-light distribution model. The structure leverages regional bottling partnerships to support local packaging, reduce transportation emissions, and maintain product authenticity. This approach aligns with a broader strategy focused on climate responsibility and resource traceability. To date, Arctic Ice has secured a 2 billion liter distribution contract in the Middle East, enabling localized market access without the need for large-scale physical infrastructure. Several additional international agreements are advancing toward finalization. The model allows faster penetration into key markets while aligning with regulatory and environmental expectations unique to each region. The operational structure supports net CO₂-negative outcomes while sustaining brand consistency. In addition to Arctic Water Bank's bottled water initiative, Arctic Ice is a specialized venture focused on supplying naturally formed ice cubes to high-end hospitality clients. Harvested from glacial formations in Greenland, these ice cubes are shaped over centuries through natural compression and freezing processes. Free from industrial alteration, the ice is distributed to elite service environments and private clients seeking elevated quality standards and verified origin. The product's integration into premium mixology and exclusive venues reinforces a growing demand for purity, provenance, and minimal processing. The Greenland license not only provides a commercial advantage but also reinforces Arctic Ice's position in global resource discussions. With clean water access becoming increasingly politicized and scarce in various parts of the world, a reliable supply chain rooted in Greenland offers stability and strategic control. The licensing terms reflect a commitment to sustainable extraction practices, regulatory compliance, and the stewardship of natural reserves under long-term agreements. Samir Ben Tabib, founder and CEO, has led the formation of Arctic Ice and its affiliated ventures through a multi-sector approach that includes environmental protection, economic viability, and ethical sourcing. Arctic Water Bank and Njuba & Tabib Enterprises, the latter focused on ethical gold sourcing in East Africa, operate under shared principles of transparency, accountability, and resource integrity. This license agreement marks a significant milestone in Arctic Ice's global expansion. By combining stable resource access with sustainable operational methods and regional distribution networks, the company is positioned to play a central role in reshaping how glacial water is sourced, bottled, and delivered. Arctic Ice continues to refine its integration of luxury, logistics, and long-term environmental accountability within a shifting global landscape.
CTV News
an hour ago
- CTV News
Trump says China can buy Iranian oil, but urges it to purchase U.S. crude
U.S. President Donald Trump said on Tuesday that China can continue to purchase Iranian oil after Israel and Iran agreed to a ceasefire, a move that the White House clarified did not indicate a relaxation of U.S. sanctions. 'China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also,' Trump said in a post on Truth Social, just days after he ordered U.S. bombings of three Iranian nuclear sites. Trump was drawing attention to no attempts by Iran so far to close the Strait of Hormuz to oil tankers, as a closure would have been hard for China, the world's top importer of Iranian oil, a senior White House official told Reuters. 'The president continues to call on China and all countries to import our state-of-the-art oil rather than import Iranian oil in violation of U.S. sanctions,' the official said. After the ceasefire announcement, Trump's comments on China were another bearish signal for oil prices, which fell nearly six per cent on Tuesday. Any relaxation of sanctions enforcement on Iran would mark a U.S. policy shift after Trump said in February he was re-imposing maximum pressure on Iran, aiming to drive its oil exports to zero, over its nuclear program and funding of militants across the Middle East. Trump imposed waves of Iran-related sanctions on several of China's independent 'teapot' refineries and port terminal operators for purchases of Iranian oil. 'President Trump's greenlight for China to keep buying Iranian oil reflects a return to lax enforcement standards,' said Scott Modell, a former CIA officer, now CEO of Rapidan Energy Group. In addition to not enforcing sanctions, Trump could suspend or waive sanctions imposed by executive order or under authorities a president is granted in laws passed by Congress. Trump will likely not waive sanctions ahead of coming rounds of U.S.-Iran nuclear talks, Modell said. The measures provide leverage given Tehran's demand that any deal includes lifting them permanently. Jeremy Paner, a partner at law firm Hughes Hubbard & Reed, said if Trump chooses to suspend Iran oil-related sanctions, it will require lots of work between agencies. The U.S. Treasury would need to issue licenses, and the State Department would have to issue waivers, which require Congressional notification. Oil traders and analysts in Asia said they did not expect Trump's comments to have a near-term impact on Chinese purchases of oil from either Iran or the U.S. Iranian oil accounts for roughly 13.6 per cent of China's oil purchases this year, with the discounted barrels providing a lifeline to margin-squeezed independent refineries. U.S. oil accounts for just two per cent of China's imports, and Beijing's 10 per cent tariffs on U.S. oil deter further purchases. Pressure on China China has long opposed what it has called Washington's 'abuse of illegal unilateral sanctions.' Guo Jiakun, a spokesperson for China's foreign ministry, said on Wednesday that China would adopt reasonable energy security measures in accordance with its own national interests, when asked about the Trump post at a regular press briefing. Larger purchases of Iranian oil by China and other consumers could upset U.S. ally Saudi Arabia, the world's largest oil exporter. The impact of U.S. sanctions on Iran's exports, however, has been limited since Trump's first administration when he cracked down harder on Tehran. Trump has 'flashed the Glock' this year with sanctions on Chinese trading companies and terminals, Modell said, referring to threatening with a gun. But the results have been far more 'minimum pressure' than maximum, Modell added. State Department spokesperson Tammy Bruce told reporters that Trump had signaled what he wanted to happen and that his administration is focused on delivering that. She would not say what the process would entail. 'But clearly we are focused on making sure that (the) guiding hand of President Trump prevails and moves this government forward, so we will have to wait and see when it comes to what that ends up looking like,' Bruce said. (Reporting by Timothy Gardner, Daphne Psaledakis, Jarrett Renshaw, David Brunnstrom and Bhargav Acharya, Siyi Liu; Additional reporting by Liz Lee in Beijing; Editing by Doina Chiacu, Marguerita Choy, Jamie Freed and Kim Coghill)
