The war in Iran is continuing to impact the global energy supply chain as the Strait of Hormuz remains closed to most of the world. Allison Bamford reports. <\/p>\n
As Canadian airlines continue to adjust fees to respond to skyrocketing fuel prices, analysts say the extra costs signal a much bigger issue.<\/p>\n
\u201cThis is probably the greatest energy crisis of a generation,\u201d said Dan McTeague, gas analyst and president of Canadians for Affordable Energy.<\/p>\n
Jet fuel prices have more than doubled since the war on Iran began, soaring to around $1.92 per litre. <\/p>\n
The war has disrupted essential shipping channels through the Strait of Hormuz and attacks have damaged energy production facilities in the region. It could take months for operations to get back online. <\/p>\n
The result has been a massive supply shortage that is hitting countries overseas the hardest, according to McTeague.<\/p>\n
\u201cThere is no spare capacity,\u201d he told CTV News. \u201cAsia and Europe are in big trouble, and that can only mean the next domino will fall here, in North America.\u201d<\/p>\n
The only way to conserve global supply is to drive up prices and lessen demand, according to McTeague, which could result in prices becoming \u201cunattainable and uneconomical\u201d for consumers.<\/p>\n
But availability and supply are greater concerns than the price, he said.<\/p>\n
Jet fuel is used for commercial aircrafts, military aviation, air freight and home heating in Atlantic Canada. <\/p>\n
\u201cJet fuel and diesel are the global workhorses when it comes to transportation,\u201d McTeague said. \u201cWithout either of those available, or at prices that are unattainable, we\u2019re going to see a major economic slowdown that won\u2019t spare Canada.\u201d<\/p>\n
The bulk of Canada\u2019s jet fuel is produced domestically. But the country doesn\u2019t make enough to export.<\/p>\n
This week, United States President Donald Trump told countries in need of jet fuel to buy from them. <\/p>\n
Analysts say the U.S. stock won\u2019t make up for the global shortfall, but McTeague said if countries come knocking, prices will drive up further. <\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/04\/SYSC2ZPTFOWSUAY2WOFGDJ4SOQ.jpg\")
airlines raise fare despite low fuel prices A worker hooks up a fuel hose to an airplane at Tampa International Airport in Tampa, Fla. Airline executives frequently complain about fuel costs. But the truth is higher prices actually have been good for business. June 12, 2008 file photo. (AP \/ Brian McDermott, File) Impact on travel<\/p>\n
John Gradek, an aviation lecturer at McGill University said he hasn\u2019t seen \u201cthis type of impact in aviation in the last 50 years.\u201d<\/p>\n
As global fuel supply dwindles and prices skyrocket, Gradek predicts carriers around the world could cancel flights, issue layoffs and some may even go bankrupt. <\/p>\n
Flight routes may also change, he said, to ensure planes can fuel up wherever possible.<\/p>\n
\u201cIt is going to impact summer travel,\u201d Gradek said. \u201cIt will be chaos. It will be turmoil.\u201d<\/p>\n
Domestic travel \u2018not an issue\u2019<\/p>\n
Aside from the cost, domestic flights shouldn\u2019t have trouble finding available fuel, according to Gradek. <\/p>\n
\u201cFor aircraft flying between points in Canada, it\u2019s not an issue,\u201d he said.<\/p>\n
But fuelling up for return trips from international destinations could be a challenge, which is why some Canadian airlines may start to cancel flights overseas. <\/p>\n
Gradek says cancellations could start happening as soon as mid-April<\/p>\n
\u201cInternational services are at risk,\u201d he said. \u201cAsia, Western Europe and Central Europe that\u2019s where we have to be concerned about both the supply of jet fuel as well as the price of jet fuel.\u201d<\/p>\n
Flights to Germany, Switzerland, France, Italy and the U.K. could all be spared, Gradek said, because those countries have a reliable source of fuel. But for passengers travelling to countries with short supply, he recommends finding alternative arrangements.<\/p>\n
While Canada won\u2019t have a problem with its supply, prices are tied to the global market they will continue to increase, putting financial pressure on Canadian airlines.<\/p>\n
Canadian airlines have already adjusted prices and introduced fuel surcharges to make up for the added costs. <\/p>\n","protected":false},"excerpt":{"rendered":"The war in Iran is continuing to impact the global energy supply chain as the Strait of Hormuz…\n","protected":false},"author":2,"featured_media":584234,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[712,45,49,48],"class_list":["post-584749","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-apple-news","tag-business","tag-ca","tag-canada"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/584749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=584749"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/584749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/584234"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=584749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=584749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=584749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}