The Globe and Mail reports in its Saturday, March 7, edition that Canadians hoping the Mideast war benefits the energy sector should be cautious. The Globe's John Rapley writes that the longer the conflict persists, the more it seems like economic self-harm by the U.S., with Canada as collateral damage. As the conflict continues, lower prices seem less likely. One observer says that even after the war ends, the region is likely to remain unstable, potentially keeping oil prices elevated. Even if oil prices stay high and importers seek safer suppliers, the U.S. and Canadian economies will see limited benefits. Oil and gas represent about 1 per cent of U.S. GDP and 7 per cent in Canada, with any gains in these sectors likely outweighed by inflationary impacts elsewhere in the economy. U.S. inflation appears to be rising again. As well, producers are facing higher input costs, largely due to tariffs. Higher prices are expected at supermarkets and retail stores, especially if gas prices rise. Persistent price increases will hinder the Federal Reserve's ability to cut interest rates, which are already rising. Elevated interest rates could slow economic activity and impede housing recovery in both the U.S. and Canada.