The Big Story How the conflict in Iran is raising Canadians' cost of living
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Mar 11, 2026 John Kirton, political science professor and director of the G7 Research Group, explains global ripple effects from the Iran conflict. He breaks down how Strait of Hormuz disruptions moved oil markets. He discusses Canada's exposure to price shocks, debates boosting domestic oil production, and outlines risks of wider escalation involving major powers.
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Hormuz Closure Sends Oil Prices Wild
- Global oil price spikes are driven by disruptions in the Strait of Hormuz when Iran blocks exports from Gulf producers.
- John Kirton notes prices jumped from about $80 to over $122 a barrel when exports were effectively cut off, causing market volatility.
Canada Is Better Positioned Than Other G7 Members
- Canada is relatively insulated because it is a net oil and gas producer and is rapidly electrifying its energy mix.
- Kirton cites 85% of Canadian energy from renewables and growing EVs, heat pumps, hydro and nuclear usage reducing dependence on oil for heating.
Prioritize Electrification Over New Pipelines
- Avoid doubling down on new fossil infrastructure; focus on electrification instead of building more pipelines.
- Kirton warns Trans Mountain was a risky taxpayer bet and argues future CEOs see oil assets as potentially stranded amid rising EV adoption.