Ottawa (Rajeev Sharma)— Motorists across Canada are facing a sharp spike in fuel costs this week as the escalating military conflict between the United States, Israel, and Iran continues to destabilize global energy markets. With the price of Brent crude oil briefly surging above US$84 per barrel—a jump of more than $10 since the onset of “Operation Epic Fury”—analysts warn that the current volatility could lead to a sustained period of high prices at the pump for Canadian households already struggling with an affordability crisis.
The primary driver for the increase is the growing threat to the Strait of Hormuz, a critical maritime chokepoint that handles approximately 20 per cent of the world’s seaborne oil and liquefied natural gas (LNG). Following the recent sinking of the Iranian frigate IRIS Dena near Sri Lanka and retaliatory threats from Tehran, global investors are pricing in a significant risk of supply disruptions. In Canada, where fuel prices are sensitive to international benchmarks, the impact has been immediate and widespread, with multiple provinces reporting overnight increases on Wednesday and Thursday.
Regional Impact Across Canada
- Atlantic Canada: Residents in Nova Scotia saw a dramatic 8.9-cent jump, with prices in Halifax reaching 147.7 cents per litre. Prince Edward Island reported increases of 6.9 cents, while New Brunswick’s maximum price held steady at 142 cents per litre as of Wednesday morning.
- Ontario & Quebec: In Toronto, gas prices spiked to $1.439 per litre, with experts predicting a further 6-cent increase by Thursday. Montreal saw some of the highest volatility, with prices on the island reaching as high as $1.62 per litre at certain stations.
- The Prairies & Alberta: Saskatchewan drivers are bracing for a potential long-term hike of up to 20 cents per litre if oil reaches projected highs. In Alberta, despite a 10-cent jump in cities like Lethbridge, the province-wide average remained relatively lower at $1.31 per litre.
Industry analysts, including Dan McTeague, suggest that if the conflict in the Middle East continues to widen, the cost of crude could increase by another $20 a barrel. For Canadian consumers, this would translate into a direct hit of $0.20 per litre for gasoline and as much as $0.40 per litre for diesel. This energy shock coincides with a 21% provincial property tax hike in Calgary, further intensifying the political pressure on both federal and provincial governments to provide immediate financial relief to citizens caught in the crossfire of global geopolitics and domestic inflation.
