The Globe and Mail reports in its Tuesday, June 30, edition that when the Iran war began in February, many wrongly believed its impact on the Canadian housing market would be brief. The Globe's Salmaan Farooqui writes that inflationary effects might persist for months, crimping Canadian housing. The Iran war impacted the housing market by causing bond yields to spike, leading fixed mortgage rates to rise by about 50 basis points. Economic uncertainty from the conflict also caused consumer confidence to drop, prompting potential home buyers to delay purchases. Economists say it'll now take a long time for prices to stabilize and inflation to ease, even after a peace deal is finalized. Iran war tensions are raising questions over how crude prices may be affected. Desjardins economist Kari Norman expects higher energy prices due to the Iran war to continue through this year and next. He says that will lead to some inflationary impact spilling into other sectors. Meanwhile, CIBC economist Benjamin Tal says he doesn't expect the Canada five-year bond yield to drop all the way to their pre-war levels. The bond yield was at roughly 2.7 per cent before the war, and was hovering around 3 per cent on Monday.