Gas prices could rise above $2/litre across Canada as Iran war drags on, experts say

Canadian consumers are facing a surge in gasoline prices, with some regions already seeing prices exceed $2 per litre, a threshold experts predict could become widespread across the country. This trend is directly linked to escalating global crude oil prices. The primary driver behind these rising costs is the intensification of Middle East instability, particularly geopolitical tensions involving Iran, which pose significant threats to global energy supply chains. These tensions create a substantial geopolitical risk premium on crude oil by jeopardizing critical maritime transit points like the Strait of Hormuz and Red Sea shipping lanes, thus increasing the cost of oil extraction, transportation, and ultimately, refined gasoline for markets like Canada.