BoC's Gov. Macklem: Iran war impact on Canada's economy depends on duration

PART OF IRAN'S SOUTH PARS PETROCHEMICAL FACILITIES HAVE BEEN ATTACKED - TASNIM IRAN SAYS ASALUYEH OIL INDUSTRY FACILITIES ATTACKED: STATE TV APNewsAlert: DUBAI, United Arab Emirates (AP) — Iranian state media say natural gas facilities associated with offshore South Pars field attacked, without elaborating. IRAN’S ENERGY HEART JUST GOT HIT An attack struck South Pars — the site behind ~70% of Iran’s natural gas. Damage is still unclear, but this area has shut down before after strikes. What changed: This comes as tensions rise, with recent strikes in Iran and Lebanon and… pic.twitter.com/CglR0bjqqC Iran’s state-run media report an attack on facilities at its key South Pars offshore gas field - Iranian state-run media say that facilities associated with Iran’s massive offshore South Pars natural gas field came under attack Wednesday. Both Iranian state television and the state-run IRNA news agency reported on the attack targeting facilities at Asaluyeh in Iran’s southern Bushehr province. It did not immediately elaborate. Iran shares the offshore field in the Persian Gulf with Qatar, which it has repeatedly attacked during the war along with other Gulf Arab nations. It wasn’t clear if Israel or the United States had carried out the attack. However, the U.S. has been operating primarily in southern Iran. The U.S. previously attacked Iran’s Kharg Island in the Persian Gulf, its main oil terminal.

Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss today’s monetary policy decision. Today, Governing Council maintained the policy interest rate at 2.25%. We’ve held the policy rate at this level since October. The Canadian economy continues to face heightened uncertainty related to US trade policy and geopolitical risks. Now the war in Iran has added a new layer of uncertainty. Its impact on the global and Canadian economies will depend on how long the conflict lasts and the extent to which it spreads across the Middle East. Inflation in Canada has been close to the 2% target for more than a year. But, as we’ve seen, the war in Iran is causing oil prices to move sharply higher and this will push up inflation in the short term. BANK OF CANADA WILL NOT ALLOW THE EFFECTS OF HIGH ENERGY PRICES TO BECOME PERSISTENT INFLATION - GOVERNOR TIFF MACKLEM BANK OF CANADA WILL NOT ALLOW THE EFFECTS OF HIGH ENERGY PRICES TO BECOME PERSISTENT INFLATION - GOVERNOR TIFF MACKLEM

*IRAN TO RETALIATE AGAINST ATTACK ON ENERGY INFRASTRUCTURE: FARS *IRAN WILL HIT ENEMY SITES PREVIOUSLY THOUGHT TO BE SAFE: FARS IRAN JUST THREATENED ENERGY RETALIATION — AND OIL REACTED FAST Iran signaled retaliation after strikes on its energy sites, including the March 14, 2026 hit on Kharg Island. Oil jumped 3% right after the warning. What changed: The focus is now on targeting energy assets… *IRAN'S IRGC TO ISSUE WARNING TO GULF COUNTRIES SOON: TASNIM *IRAN SAYS SOME GULF ENERGY SITES NOW LEGITIMATE TARGETS: TASNIM *IRAN'S TASNIM PUBLISHES LIST OF FACILITIES IN SAUDI, UAE, QATAR