Conflict in Iran could affect gas prices in Maritimes

How will the ongoing conflict in Iran affect the Maritimes?

Following attacks on Iran by the United States and Israel over the weekend, the Middle East country launched retaliation, which is starting to affect global oil supplies.

“That has led to a real concern about dwindling ability to supply the world, especially in the Strait of Hormuz, which is a transit way for about 20 per cent of the world’s oil,” says petroleum analyst Dan McTeague.

“What’s happening now is that oil is up about $5 a barrel, that’s a little bit less than what one would expect in these kinds of circumstances.”

Pump prices are expected to climb as a result.

“Ultimately, I think we’re headed towards an increase of $20 a barrel which would translate $0.20 a litre increase and for diesel as much as $0.35-$0.40 a litre.”

McTeague says the interrupter mechanism could be used in Nova Scotia as early as Monday night for diesel and mid-week for gasoline.

“If you happen to be driving around and need some diesel, home heating fuel, furnace fuel, expect that to go up if you don’t buy it today,” he says.

International air travel is also impacted.

“That region has become what I would call mega hubs for operations of carriers to filter and move traffic from points around the world through the Middle East and then onto their destinations,” says McGill University aviation management professor John Gradek.

“Due to the military situation in the Middle East, all flights to and from Dubai and Tel Aviv are currently suspended and restarting on March 23, 2026,” says Air Canada on its website. “If you are in either of these regions, please do not head to the airport.”

“I don’t think Air Canada wants to risk its airplanes going to that part of the world,” Gradek says.

That’s affecting some of the 85,000 Canadians and permanent residents currently in the Middle East.

Flight routes have also been altered with planes maneuvering around the warzone.

“That airspace is now closed so now you have to divert your airplanes, use more fuel, take more time to be able to get to your destination,” says Gradek.

The federal government is urging Canadians in the Middle East to register with Global Affairs Canada to receive updates about travel advisories.