The global oil shock triggered by the war in Iran pushed crude above $90 USD a barrel Friday, sending Calgary gas prices sharply higher overnight.
The closure of the Strait of Hormuz, the narrow waterway through which roughly 20 per cent of the world’s oil supply moves each day, has rattled global energy markets and driven a spike in fuel costs at home.
Most Calgary stations were selling gas at about $1.52 per litre Friday morning, up nearly 10 cents since yesterday and roughly 20 cents since a week ago, prompting many drivers to do a double take at the pumps.
West Texas Intermediate crude jumped nearly $10 a barrel on the day, climbing above the $90 mark for the first time since 2023 as traders reacted to the escalating conflict and the effective shutdown of one of the world’s most critical shipping lanes.
According to GasBuddy, the sudden surge isn’t simply a matter of long‑term oil contracts insulating consumers from volatility. The physical disruption of supply, even oceans away, sends immediate ripples through the global pricing system.
Matt McClain, a petroleum analyst with GasBuddy, says the shock is unavoidable.
“That is 20 per cent of the oil supply for the entire world,” McClain said. “Contract or not, when you suddenly have an upset in physical, actual supply, you’re going to start running into issues.”
While North America is not facing a shortage, McClain notes that the oil market is so interconnected that local pump prices inevitably respond to global turmoil.
“The cost of oil isn’t just factored in on a local basis, it’s actually factored on an exchange on a global scale,” he said.
Analysts warn prices are unlikely to ease until the Strait of Hormuz fully reopens to tanker traffic, a prospect that remains uncertain as the conflict continues.
Calgarians can find the average pump price and the lowest prices in the city on the CityNews gas prices page.
With files from Edward Djan