The war in Iran is adding almost $650 in extra fuel costs this year for the average Ontario household, according to the province’s financial watchdog.
A new report from the Financial Accountability Office of Ontario modelled the extra cost of oil after United States President Donald Trump began a military campaign in the Middle East.
Global oil markets have been surging ever since shipping traffic was virtually halted in the Strait of Hormuz when the conflict began at the end of February.
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The report said oil had increased from roughly US$65 per barrel at the start of the conflict to around US$105 in May. The increase is leading to higher prices at the pump in Ontario and across the world.
The FAO calculated that, as a direct result of the war, the average Ontario household is paying an extra $650 in fuel costs throughout 2026.
That figure does not include potentially higher prices on things like groceries as a result of higher costs to transport goods by land and air to stores.
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“To the extent that businesses pass on higher fuel costs to consumers, the additional fuel-related costs would be higher for households,” the FAO wrote.
One expert said he expects Ontario’s gas prices to stay high and unpredictable as long as conflict in the Middle East continues.
“It’s really been just a continued, multiple months of volatility from March after the U.S. attacked Iran to what we’re experiencing today,” Patrick De Haan, head of patrolum analysis with GasBuddy, said.
“As long as the Strait of Hormuz continues to be closed, it’ll continue to be a volatile time dictated by any developments between those two parties.”
Because Carney, Liberals, and activists refuse to allow our own oil to be refined within our own market and, what’s that, rely on the US to bring our resource to market?
Thats strange. If we’re in control of refining then we’re in control of the potential to minimize the carbon output.
The naive think they are saving the world by allowing other nations to do our dirty work. There’s no paper loopholes to reducing global CO² levels…thats stupidity.