Canada Fuel Costs Rise as Geopolitical Turmoil Spikes Oil Prices

Fuel prices in Canada are climbing as crude oil reaches its highest levels in over a month. The national average for gasoline exceeded $1.80 a litre on July 23, 2026, with additional increases of five to 10 cents expected. West Texas Intermediate crude has risen above US$92 a barrel, while Brent crude has returned to triple digits.

This price surge follows a war launched by the United States and Israel against Iran in late February, which halted one-fifth of global oil tanker shipments through the Strait of Hormuz. Further supply disruptions occurred in the Red Sea, where Iran-backed Houthi rebels attacked two Saudi oil tankers, affecting the Bab el-Mandeb Strait. Simultaneously, Ukrainian attacks on Russian refineries have constrained the global supply of jet fuel and diesel.

Patrick De Haan of Gasbuddy warned that diesel prices could surpass the previous April record of $2.28 a litre. De Haan noted that because diesel powers critical infrastructure from trucks to trains, the price surge is problematic for the broader Canadian economy.