Canada's new tariffs on U.S. goods took effect, escalating trade tensions between the two allies. The move, a direct response to U.S. steel and aluminum tariffs, targets a wide range of products, including agricultural goods and consumer items. This action is expected to raise costs for businesses and consumers on both sides of the border, potentially disrupting supply chains and impacting economic growth.

In energy markets, oil prices climbed after Houthi rebels struck energy infrastructure in Saudi Arabia. The attacks, which targeted key facilities, raised concerns about supply disruptions in the Middle East. Brent crude futures jumped by over 2%, while West Texas Intermediate also saw significant gains. Analysts warn that further escalation could push prices higher, adding to inflationary pressures globally.

Meanwhile, U.S. stocks fell as investors weighed the impact of tariffs and geopolitical risks. The Dow Jones Industrial Average dropped by 300 points, while the S&P 500 and Nasdaq also declined. Technology and manufacturing sectors led the losses, with companies like Apple and Boeing facing pressure due to potential cost increases from tariffs. Treasury yields remained volatile as traders sought safe-haven assets.

The combined effects of trade disputes and geopolitical tensions are creating uncertainty for global markets. Economists suggest that the tariffs could slow down economic activity, while oil price spikes might squeeze consumer spending. Investors are closely watching for any diplomatic progress or further developments that could shift market sentiment.