Canadian Prime Minister Mark Carney will seek to reset strained ties and push efforts to diversify trade beyond the United States when he meets his Indian counterpart Narendra Modi on Monday.The talks in New Delhi are expected to cover trade and investment, clean energy, defence, critical minerals and artificial intelligence, officials from both sides have said.A major focus will be reviving negotiations for a long-discussed Comprehensive Economic Partnership Agreement.Speaking to business leaders in Mumbai on Saturday, Carney said the planned deal, which he was looking to seal by the end of the year, could double bilateral trade by 2030.”This visit marks the end of a challenging period, and more importantly, the beginning of a new, more ambitious partnership between two confident and complementary nations,” he said.Carney’s visit is a key step forward in ties that effectively collapsed in 2023 after Ottawa accused New Delhi of orchestrating a deadly campaign against Sikh activists in Canada.India’s foreign ministry said Carney’s visit marked a “significant step” in strengthening relations.India is seeking to attract more overseas investments and says Canadian pension and wealth funds have already invested $73 billion.Energy-hungry India — the world’s most populous country, with 1.4 billion people — hopes Canada can support its ambitious plan to expand nuclear power capacity.- ‘Strategic partner’ -“We can be India’s strategic partner in critical minerals for India’s manufacturing, clean tech, and nuclear industries,” Carney said.”And India can help us double our grid with clean power by 2040.”Before Carney took office last year, Ottawa accused Modi’s government of direct involvement in the 2023 killing of Hardeep Singh Nijjar, a naturalised Canadian citizen who was part of a fringe group that advocated for an independent Sikh state called Khalistan.Khalistan militants have been blamed for the assassination of an Indian prime minister and the bombing of a passenger jet.Former prime minister Justin Trudeau’s government further alleged India had directed a broader campaign of intimidation against Sikh activists across Canada.India has repeatedly dismissed the allegations, which sent relations into freefall, with both nations expelling a string of top diplomats in 2024.Strategic analyst and author Brahma Chellaney said Carney’s trip was “intended to close one of the most acrimonious diplomatic chapters between two major democracies in recent memory”.”For two pluralistic democracies navigating an uncertain century, this may prove to be the most sustainable foundation of all,” he said on X.Ties between New Delhi and Ottawa improved after Carney took office in March 2025, and envoys have since been restored.- ‘Enormous opportunities’ -“Building true strategic autonomy requires diversification, not isolation,” Carney said.”It creates enormous opportunities for India and Canada to work together, to limit risks, to increase prosperity, and to build sovereignty.”Carney has made reducing Canada’s heavy reliance on the US economy a centrepiece of his foreign economic policy.In 2024, before US President Donald Trump returned to office and upended global trade with a flurry of tariffs, more than 75 percent of Canadian exports went to the United States. Two-way trade that year exceeded $900 billion.So far Trump has broadly adhered to the North American free-trade agreement he signed during his first term, and about 85 percent of US-Canada trade remains tariff-free.But at the same time, Trump has also imposed painful industry-specific tariffs, and there are fears that if he scraps the broader trade deal, the Canadian economy will be hit hard.Carney is trying to boost commerce with Europe and Asia as a strategy to backstop Canada’s economy, should free trade with Washington collapse.After India, Carney will travel to Australia and Japan — part of a wider push to broaden Canada’s economic partnerships.burs-abh/mjw

Oil prices soared and stocks fell in Asia on Monday after US-Israeli strikes on Iran sent investors fleeing the prospect of an extended conflict in the crude-rich Middle East.Brent briefly spiked almost 14 percent and West Texas Intermediate nearly 12 percent at the start of business after the attack on the Islamic Republic, which killed supreme leader Ayatollah Ali Khamenei and other senior officials.The bombings have also seen the vital Strait of Hormuz — through which around 20 percent of global seaborne oil passes — effectively shut and several ships attacked, fanning supply fears.Equity markets across Asia sank, with Tokyo, Hong Kong, Singapore, Wellington and Taipei all deep in the red. US futures were down more than one percent. However, energy firms rallied, with Australia’s Woodside Energy jumping more than five percent and Santos climbing nine percent, while PetroChina added almost four percent in Hong Kong. Inpex in Japan was up more than 10 percent.Gold — a key go-to safe haven in times of turmoil — climbed two percent.While the strikes have ramped up geopolitical worries, traders wound down their initial bets, with crude sitting around five percent higher and stock markets paring losses.Brent, the international benchmark for crude, had already rallied last week on growing concerns Trump would order an attack as talks aimed at curtailing Iran’s nuclear programme stuttered.”If higher oil prices persist, it raises the risk of stickier headline inflation and can slow the pace at which inflation prints improve,” wrote Saxo Markets’ Charu Chanana.”That does not automatically mean policy tightening, but it can make the Fed more cautious about cutting quickly, because energy-driven inflation can spill into expectations and broader pricing behaviour over time.”The US president has called on Iranians to rise up against their government and said the war could last “four weeks”.Iran’s retaliatory missile and drone campaign in the Gulf killed four people and wounded dozens more, the UAE foreign ministry said.While Iran has not officially closed the Strait of Hormuz, its Revolutionary Guards have warned against transiting the waterway.- Trump’s ‘Achilles heel’ -On Sunday, at least two ships were struck, one off Oman’s coast and another off the UAE’s, British maritime security agency UKMTO said.Iranian state television said an oil tanker was struck and was sinking after trying to “illegally” pass through the strait. In such a situation, insurance costs become prohibitive, said Amena Bakr, head of Middle East and OPEC+ research at analysts Kpler, predicting that the price could hit $90.The main shipping companies have already confirmed that they are suspending the passage of their fleets along the route.”While some alternate infrastructure could be used to bypass the Strait of Hormuz, the net impact from its closure would be a loss of eight to 10 million bpd (barrels per day) of crude oil supply,” said Jorge Leon, an analyst with Rystad Energy, in a note on Saturday.In theory, oil-importing countries have reserves, with OECD members required to maintain 90 days’ worth of stocks, but prices above $100 cannot be ruled out.If the blockade of the Strait of Hormuz continues, “no matter how much spare capacity (in the strategic reserves) is not going to fill that gap. That gap is just too big”, said Bakr.Another analyst at Kpler, Michelle Brouhard, described high oil prices as “the Achilles heel of Trump”.In her view, Iran is likely to look to keep crude prices high to force Trump to back down, as he promised his electorate low prices, at a time when the United States is already gearing up for mid-term elections at the end of this year.Gas prices also soared Monday — dealing another blow to the world economy — as Qatar is a key exporter of liquefied natural gas, heightening inflationary risks.The last time crude prices climbed above $100 was at the start of the war in Ukraine. Gas also soared, which played a major role in a prolonged period of rising prices.Rising energy prices, increased shipping costs and loss of revenue for air transport could have “a harmful effect on growth”, said economist Eric Dor, from the IESEG School of Management in Paris.”If it’s a matter of three days, it’s not serious. But if it’s over a longer period, then it will have an additional recessionary effect,” he told AFP.- Key figures at around 0200 GMT -West Texas Intermediate: UP 4.2 percent at $69.84 per barrelBrent North Sea Crude: UP 4.7 percent at $76.32 per barrelTokyo – Nikkei 225: DOWN 1.4 percent at 58,001.38 Hong Kong – Hang Seng Index: DOWN 1.9 percent at 26,130.70Shanghai – Composite: UP 0.3 percent at 4,173.75Euro/dollar: DOWN at $1.1790 from $1.1823 on FridayPound/dollar: DOWN at $1.3447 from $1.3486Dollar/yen: UP at 156.26 yen from 156.03 yenEuro/pound: DOWN at 87.65 pence from 87.67 penceNew York – Dow: DOWN 1.1 percent at 48,977.92 (close)London – FTSE 100: UP 0.6 percent at 10,910.55 (close)