In early April, weeks after the U.S. and Israel launched a massive bombing campaign against Iran, the parties signed a ceasefire deal mediated by Pakistan. A day after the deal was signed, Israel hit Lebanon with 100 airstrikes in 10 minutes, which Iran says was a clear ceasefire violation.
As of mid-May, hostilities had slowed in the Gulf region, but diplomatic efforts to end the conflict have stalled, with Iran continuing to effectively close the Strait of Hormuz to any vessel going to or from the U.S., Israel or their allies. As a result, global energy prices have skyrocketed. In Canada, this spiked inflation to 2.8 per cent in April, with North American oil companies as the main beneficiaries.
On May 17, Trump expressed his frustration with the political deadlock, warning Iran that the “clock is ticking,” and warning that if Iran doesn’t make concessions, there “won’t be anything left of them.”
This article appeared in the 2026 Jun/Jul issue.