The Globe and Mail reports in its Saturday edition that Canadian and U.S. stock markets sank on Friday amid fears about the effects of the U.S.-Iran war on interest rates. A Reuters dispatch to The Globe quotes Dustin Reid at Mackenzie Investments saying markets were seeing risk-off moves amid higher energy prices and inflationary risks. "You're seeing pricing for central bank hikes move further and further in that direction. So it's having a pretty significant impact on all asset classes of course, and equities are no exception," he said. The S&P/TSX Composite Index fell 537.57 points to 31,317.41. In New York, the Dow was down 443.96 points at 45,577.47. The S&P 500 index was down 100.01 points at 6,506.48, while Nasdaq was down 443.08 points at 21,647.61. Worries have gotten so high that traders have cancelled nearly all their bets that the U.S. Federal Reserve could cut interest rates this year, according to data from CME Group. Some even think the Fed could raise rates in 2026, a nearly unthinkable scenario before the war on Iran. The May crude oil contract was up $2.68 at $98.23 (U.S.) a barrel, but down from its $119.50 high last week. (all figures U.S.). April gold was down $30.80 at $4,574.90 an ounce.