Updated

U.S. Energy Secretary Chris Wright said a nuclear deal with Iran may never materialize, as Iran warned of faster and heavier retaliation against U.S. attacks, underscoring the deepening rift between Washington and Tehran. Tensions escalated further after the U.S. and Iran traded strikes over the weekend, with Iran's foreign ministry now also criticizing Canada for condemning Iran's actions and backing U.S. moves in the Strait of Hormuz; Canada said it would work with partners to maintain pressure on Tehran. Iran has separately acknowledged the mounting economic toll of the standoff. Oil prices extended gains on renewed Mideast hostilities, with traders citing worries of a prolonged conflict following the weekend's exchange of strikes. The broadening diplomatic rift, now drawing in third parties like Canada, adds to concerns that the standoff could persist and continue to weigh on energy markets and geopolitical risk premiums.