Traders Face 'Considerable Uncertainty' Over Mideast Conflict, Bank of Canada's Macklem Says -- Update

By Paul Vieira

OTTAWA--The conflict in the Middle East has forced traders to reprice assets due in part to "considerable uncertainty" about how long military operations in Iran will last, said Bank of Canada Gov. Tiff Macklem.

Macklem referred briefly to the joint U.S.-Israel attacks in Iran in remarks delivered in Toronto.

"As we speak, the actions taken against Iran by Israel and the United States have increased volatility in energy and financial markets and there is considerable uncertainty about the duration and fallout of this conflict," Macklem said.

Afterward, during a question-and-answer session, Macklem said the conflict represents a shock to both energy markets and risk sentiment. The price of a barrel of West Texas Intermediate crude is nearly $10 higher relative to late last week, or before the U.S. and Israel started air attacks on Iran. Natural gas prices also have shot upward.

He added traders also are moving cash from riskier assets to safer plays.

"How this plays out is going to depend, importantly, on the duration" of the conflict "and how broad it is," Macklem said.

Write to Paul Vieira at [e-mail]

(END) Dow Jones Newswires

03-04-26 1216ET