Gas prices jumped 8 cents to $1.78 per litre in the Greater Toronto Area on Sunday. That price should hold until the middle of the week, but the conflict in Iran is causing severe turbulence at the pumps and could push prices above $2 per litre, according to experts at En-Pro.
“From then on, all bets are off,” Roger McKnight, chief petroleum analyst with En-Pro told CityNews. “The prospect of $2.00 per litre is a distinct probability, not a mere possibility.”
In some parts of Canada, such as British Columbia, gas prices have already exceeded $2.00 per litre.
“There is nothing to stop it unless there is an end to this war and that doesn’t look like [that’s] happening anytime soon,” McKnight added.
The United States and Iran threatened to target critical infrastructure Sunday as the war in the Middle East, now in its fourth week, puts lives and livelihoods at risk throughout the region.
Iran said the Strait of Hormuz, crucial to oil and other exports, would be “completely closed” immediately if the U.S. follows up on President Donald Trump’s threat to attack its power plants. Trump late Saturday set a 48-hour deadline to open the strait.
Oil prices plunged Canadian and U.S. stock markets
Canadian and U.S. stock markets sank on Friday amid fears about the effects of the U.S.-Iran war on interest rates.
The S&P/TSX composite index was down 537.57 points at 31,317.41.
In New York, the Dow Jones industrial average was down 443.96 points at 45,577.47. The S&P 500 index was down 100.01 points at 6,506.48, while the Nasdaq composite was down 443.08 points at 21,647.61.
Ottawa has said it is looking at helping Gulf nations and might contribute to efforts to unblock fuel shipments — but it hasn’t explained what this might involve, beyond stressing that it has no intention of joining the U.S. military campaign.
On Thursday, Prime Minister Mark Carney endorsed a statement by allies — after it was released — expressing a willingness to contribute to efforts to reopen the Strait of Hormuz, which Iran has blockaded.
Defence Minister David McGuinty added that Canada is “considering” helping Iran’s neighbours defend themselves if they seek assistance from the NATO alliance.
Last week, the Canadian Labour Congress (CLC) issued a statement calling for the federal government to “act decisively to protect Canadians from the worst impacts with timely relief.”
“We’ve seen this before. After the invasion of Ukraine, global oil giants posted record profits, nearly $1 trillion worldwide in 2022, while families struggled with rising costs,” CLC wrote.
“When global instability drives up fuel and transportation costs, it doesn’t just show up at the gas pump. It raises the cost of groceries, heating, and everyday essentials. And it’s working families who are feeling it most,” the organization added.
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With files from the Canadian Press.