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Markets Digest Hot U.S. Inflation as Iran Tensions Keep Oil Elevated

Publication:  moneysavings.ca / Canadian Money Brief  Date:  Tuesday, May 13, 2026 The TSX opens cautiously Wednesday after hotter-than-expected U.S. CPI data rattled Wall Street on Tuesday, while Strait of Hormuz disruptions continue to lift energy stocks and pressure the loonie toward 1.35 against the greenback. TSX ~34,291 S&P 500 7,400.96 ▼0.16% WTI Oil ~$102/bbl ▲ Gold ~$4,721 USD/oz ▼ USD/CAD ~1.35 US CPI Apr 3.8% ▲ (est. 3.7%) Market Overview Canadian investors are starting Wednesday on a cautious note following a mixed session south of the border. U.S. equities dipped Tuesday after April's consumer price index came in at 3.8% — a touch above the 3.7% consensus forecast and the highest reading since May 2023 — while the core rate held at 2.8%, also above expectations. The data has effectively closed the door on any Federal Reserve rate cuts in 2026, with traders now pricing in a roughly 70% chance of a rate hike by April 2027. For Canadians, the ripple effects...

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EU-Israel Relations Strain as Spain and Ireland Recognize Palestinian State

 

Relations between the European Union (EU) and Israel have taken a sharp downturn following the formal recognition of a Palestinian state by EU members Spain and Ireland. The situation escalated on the eve of this diplomatic recognition, with Madrid suggesting that sanctions should be considered against Israel due to its continued attacks in the southern Gaza city of Rafah.

Spain’s Decision and Israeli Response Spain’s Foreign Minister, Jose Manuel Albares Bueno, announced the recognition of a Palestinian state, a move that has drawn strong reactions from Israel. In response, Israeli Foreign Minister Katz informed Spain that its consulate in Jerusalem would no longer be allowed to assist Palestinians. The tension between the two nations reflects the broader complexities of the Israeli-Palestinian conflict.

EU’s Stance and the International Criminal Court Adding to the strain, the EU’s foreign policy chief, Josep Borrell (a Spaniard), expressed support for the International Criminal Court (ICC). The ICC’s prosecutor is seeking an arrest warrant against Israeli Prime Minister Benjamin Netanyahu and other leaders, including those from Hamas. Borrell’s endorsement of the ICC’s actions further fueled the heated exchange between the EU and Israel.

The Weight of Antisemitism Accusations Borrell’s statement also touched on the sensitive issue of antisemitism. He acknowledged that the term “antisemitic” carries significant weight and emphasized the importance of using it judiciously. His remarks underscore the delicate balance between addressing legitimate concerns and avoiding inflammatory language.

Spain’s Move: Rewarding Terror or Diplomatic Gesture? Israeli Foreign Minister Katz accused Spain of “rewarding terror” by recognizing a Palestinian state. He invoked historical references, stating that “the days of the Inquisition are over.” The recognition decision has implications not only for bilateral relations but also for the broader dynamics in the Middle East.

As the situation unfolds, the EU-Israel relationship remains strained, and the impact of these diplomatic moves reverberates across the international stage. The recognition of a Palestinian state by Spain and Ireland has set the tone for further discussions and potential actions in response to the ongoing conflict in the region.

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