Iran’s closure of the Strait of Hormuz drives WTI crude above $74.00, boosting the Canadian Dollar amid higher energy export revenues.
The Canadian Dollar remains steady at 1.4160 against the US Dollar in European trade, supported by a 3.75% jump in WTI oil prices to above $74.00. The move follows Iran’s decision to close the Strait of Hormuz, disrupting nearly one-fifth of global oil supply.
Canada’s status as a net energy exporter ties its currency closely to oil prices. While the Loonie strengthens against most peers, safe-haven demand for the USD limits gains in the USD/CAD pair. Earlier, the CAD outperformed the Australian Dollar in Monday’s session.
Iran’s weekend announcement cited retaliation for US military strikes as the reason for the indefinite closure. The geopolitical escalation has heightened market volatility, with traders monitoring further developments in the region.