The global oil shock triggered by the war in Iran pushed crude above $90\u202fUSD a barrel Friday, sending Calgary gas prices sharply higher overnight.<\/p>\n
The closure of the Strait of Hormuz, the narrow waterway through which roughly 20 per cent of the world\u2019s oil supply moves each day, has rattled global energy markets and driven a spike in fuel costs at home.<\/p>\n
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.<\/p>\n
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\u2019s most critical shipping lanes.<\/p>\n
According to GasBuddy, the sudden surge isn\u2019t simply a matter of long\u2011term oil contracts insulating consumers from volatility. The physical disruption of supply, even oceans away, sends immediate ripples through the global pricing system.<\/p>\n
Matt McClain, a petroleum analyst with GasBuddy, says the shock is unavoidable.<\/p>\n
\u201cThat is 20 per cent of the oil supply for the entire world,\u201d McClain said. \u201cContract or not, when you suddenly have an upset in physical, actual supply, you\u2019re going to start running into issues.\u201d<\/p>\n
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.<\/p>\n
\u201cThe cost of oil isn\u2019t just factored in on a local basis, it\u2019s actually factored on an exchange on a global scale,\u201d he said.<\/p>\n
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.<\/p>\n