Oil prices are back on the rise as President Trump is slapping fresh sanctions on Iran. The move comes after Trump decided to pull out of the Iran Nuclear Agreement, which has sent oil prices spiking to three and a half year highs. The price of US crude is up to 70.96 this morning as analysts are suggesting the move could cut upwards of 500,000 barrels of oil daily from Iran’s usual exports. Experts say this could lead to a domino effect that could nudge inflation higher and push federal officials in Canada and the US to increase their interest rates sooner.

Canada is facing its own inflation increase issues as all six big banks have now raised their mortgage rates, putting pressure on the Bank of Canada to raise its own qualifying rate, which is used in the new mortgage stress test for potential home buyers. That rate is currently at 5.14 per cent.

The Loonie is getting a boost from the crude price increase as it climbs to 77.38 cents US.