Fuel Prices Shift as Trump Claims Iran Peace Deal

Global oil prices have dropped following claims by Donald Trump that a peace deal to end the war with Iran is nearly complete. The conflict, which began on February 28 with joint U.S. and Israeli attacks on Iran, led to retaliatory strikes and the closure of the Strait of Hormuz, a critical transit point for roughly one-fifth of global seaborne oil and gas trade.

In Canada, the decline in global prices is expected to lower fuel costs in Ontario over the weekend. Gasoline prices in the Greater Toronto Area are forecast to drop by three cents per litre on Sunday, while diesel prices are predicted to fall by four cents per litre on both Saturday and Sunday.

Conversely, Australian drivers face imminent price increases. The Australian government will repeal a 32 cent per litre fuel excise cut and GST rebate on June 30. Energy Minister Chris Bowen confirmed the temporary measures will expire, and Treasurer Jim Chalmers noted the 3 billion dollar cost makes an extension unlikely. Despite the drop in global oil prices, officials suggest the impact on Australian pumps will be minimal due to the tax repeal and the continued Iranian blockade of the Strait of Hormuz.