The Globe and Mail reports in its Friday, March 20, edition that spiking oil prices raise the risk of higher interest rates for both fixed and variable mortgages. The Globe's Salmaan Farooqui writes that there is also upward pressure on bond yields, which affect the level of fixed mortgage rates on new loans. The risk of higher rates is growing for variable-rate mortgage holders, as well. On Wednesday, the Bank of Canada delivered another rate hold, but the move was overshadowed by speculation that a hike is on the way due to the worsening Iran war. The BOC headline rate remains at 2.25 per cent, but markets have been pricing in expectations of a quarter point hike by the end of 2026. The BOC said Wednesday it is prepared to adjust monetary policy in response to the oil price shock, but economists warn it is too early to assume a rate hike is imminent. CIBC economist Benjamin Tal says it is likely the Iran war will be short-lived because of its devastating economic impact. The BOC is cautious due to several economic indicators. GDP contracted in late 2025, February saw a loss of 84,000 jobs and the housing market remains sluggish. These factors may hinder a BOC rate hike and keep variable rate mortgages stable.