The Financial Post reports in its Tuesday edition that the war in Iran has turned the tables on the interest rate outlook, with bets rising that hikes could come this year, where policy-makers had been expected to stick to the sidelines. The Post's Gigi Suhanic quotes Karl Schamotta, chief currency strategist at Corpay Currency Research, saying in a note Monday, "Policy expectations have ratcheted higher across the advanced economies, reflecting a sharp jump in global inflation fears." Investors on Monday were 100 per cent positive that the Bank of Canada will hike interest rates at its final meeting of 2026, and bets rose to more than 50 per cent and 80 per cent for hikes at the September and October rate announcements, respectively. Prior to the war in Iran, investors expected the Bank of Canada to continue to hold rates at their current level of 2.5 per cent into next year. Bets are also rising that the European Central Bank and the Bank of England could be forced to hike interest rates, whereas prior to the war's outbreak, the ECB was expecting to hold rates. "The spike [in oil prices] has rekindled inflation risks ... and is now threatening global growth outlook," said BMO's Douglas Porter in a note Friday.