This is bad for the US and good for Canada and Europe, as both are teaming up to cut their reliance on Washington while tensions with Iran threaten to send markets and oil prices higher.

• Canada and the EU are building closer economic ties, with Canada set to become an associate EU member and sign dozens of new trade and investment deals.
• The EU's investment bank plans major funding for Canadian oil, gas, and mineral projects starting around 2027, aiming to replace expensive US energy and reduce dependence on US markets.
• This shift could pull tens of billions of investment dollars away from the US toward Canada, hitting American jobs and factories at a bad time, right as midterm elections approach.
• Tensions with Iran are rising, with Iran threatening to retaliate against US and Israeli targets across the Middle East if the US escalates, raising the risk of disrupted oil shipments.
• US markets are already shaky: tech stocks have dropped sharply and bond yields are jumping, signaling investors expect higher inflation ahead.

Outlook: Watch for Canada-EU investment deals to accelerate while a potential US-Iran escalation threatens to spike oil prices and shake markets further in the coming weeks.