US and Iran Weigh Framework to End Five-Week War

The United States and Iran are weighing a framework plan to end a five-week conflict that has severely disrupted global trade and energy markets. While both nations seek a resolution, Tehran is resisting pressure to quickly reopen the Strait of Hormuz under a temporary ceasefire, maintaining it as a key point of contention in the negotiations.

The prolonged war has pushed oil prices to approximately $113.92 per barrel due to shipping disruptions. This geopolitical instability has triggered significant economic volatility, particularly impacting the Canadian dollar, which traded around 72 U.S. cents on April 6, 2026, as investors pivoted toward safe-haven assets.

Canada's services economy has also suffered, contracting for a fifth consecutive month in March. The S&P Global Business Activity Index fell to 47.2, a decline driven by rising fuel costs and a drop in new business attributed to the ongoing conflict.