Fed Raises Interest Rates, Iran War and Oil Prices, EU-Canada Alliance

The Federal Reserve has raised interest rates by a quarter-percentage point, a unanimous decision aimed at curbing inflation that directly contradicts President Trump’s public demands for lower rates. While the Fed maintains its independence, persistent inflation—driven by high energy costs and supply chain pressures—necessitates this cooling measure. Simultaneously, global energy markets face severe instability as attacks on Saudi infrastructure and ongoing conflicts in the Middle East drive oil prices to record highs, triggering protests from Syria to Indonesia. Amidst these geopolitical tensions, the European Union has proposed an unprecedented associate membership for Canada. This move signals a deepening alliance between the two powers, both of which have increasingly felt marginalized by the current U.S. administration’s trade policies and threats to international security frameworks, marking a significant shift in the transatlantic geopolitical landscape.