The Decibel What war in Iran means for Canadian oil
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Mar 19, 2026 Jeffrey Jones, a Globe and Mail energy reporter with decades covering oil markets, breaks down why fighting near the Strait of Hormuz has spiked global prices. He walks through shipping disruptions, how global markets push Canadian pump costs, logistics limiting Alberta oil flows, and what policymakers might do to ease consumer pain.
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Why Hormuz Disruptions Push Prices Sharply Higher
- Global oil shortages from the Strait of Hormuz spike prices because ~20% of world crude is effectively blocked.
- Tanker transit times mean lost shipments take weeks to show up in markets, forcing prices up as refills lag (2–4 week sail times to Asia).
Canada's Production Doesn't Protect It From Price Spikes
- Canada produces and exports far more oil than it consumes but does not control global prices.
- International market pricing means domestic supply stability doesn't stop Canadian consumers facing higher pump prices when global benchmarks rise.
Eastern Refineries Rely On Imports Because Pipes Don't Connect
- Eastern Canadian refineries remain reliant on imported crude due to long-standing transport gaps from Alberta.
- Building domestic eastward pipeline capacity repeatedly failed, so refineries in Quebec and New Brunswick still import large shares of feedstock.