Canadian Prime Minister Mark Carney said his country will not rule out military action if the Iran-Israel conflict widens, though he emphasized any involvement would be defensive. Speaking alongside Australian PM Anthony Albanese in Canberra, Carney warned the war’s geographic scope could “spread very broadly,” but framed his remarks as a “fundamental hypothetical.” The comments follow U.S. strikes that sank an Iranian warship in international waters near Sri Lanka on Wednesday, escalating tensions.

Carney clarified Canada isn’t involved in offensive operations led by the U.S. or Israel, which acted without allied consultation. He stressed Ottawa’s priority: defending Canadians and allies when called upon. Meanwhile, the U.S. pressured allies like the UK and Spain to support its campaign, drawing criticism from President Trump, who threatened to cut trade ties with Spain over its refusal. Spain denied complying with U.S. requests, while the UK confirmed using its bases for defensive purposes only.

Carney initially praised U.S. actions but later urged rapid de-escalation, calling the conflict a “failure of international order.” When pressed why he didn’t initially call for restraint, he argued it was too early to assess outcomes. Canada’s delayed response highlights the challenge of balancing real-time support for allies with long-term diplomatic goals.

The turmoil underscores how regional instability risks disrupting global markets, particularly energy supplies. Analysts warn prolonged conflict could trigger volatility in oil prices and defense sector investments. For now, Carney’s cautious stance reflects Canada’s reluctance to deepen involvement without clear strategic alignment.