The Strait of Hormuz, a narrow waterway between Iran and the Arabian Peninsula, is at the centre of a global energy crisis. On February 28, 2026, following U.S. and Israeli airstrikes on Iran, the Islamic Revolutionary Guard Corps (IRGC) declared the Strait closed. This action halted traffic through the world’s most important oil route, which transports about 20% of the world’s crude oil and a quarter of liquefied natural gas shipments (The Guardian).
Iran has enforced the closure through threats and targeted attacks rather than a legal blockade. Officials warned they would attack any ship attempting to pass, and at least one vessel, the Safeen Prestige, was hit by a projectile. The IRGC also issued electronic warnings and deployed drones and potential mines in strategic channels.
Global markets reacted immediately. Brent crude increased to roughly US$82–84 per barrel, and European natural gas prices nearly doubled. Analysts warn that a prolonged closure could push oil prices above US$100–130 per barrel, potentially leading to stagflation worldwide (MarketWatch).
Canada is feeling the impact. As of March 4, Western Canadian Select crude trades around US$62.21 per barrel, up 5.66% in a single day. Gasoline prices in Toronto and the GTA jumped six cents overnight to $1.419–$1.439 per litre, with further increases anticipated. Diesel prices rose even more. A weaker Canadian dollar, at approximately US$0.73, makes imported fuel more costly (Oil Price).
If the strait remains blocked, experts predict higher pump prices, shipping disruptions, and increasing global inflation. Naval escorts and emergency energy policies may offer temporary relief, but the crisis underscores the Strait of Hormuz’s vital role in both global and Canadian energy security.
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