Fuel costs on the rise as latest geopolitical turmoil drives up crude oil prices

The impact is being felt even more sharply for another fuel derived from crude — diesel. That fuel now costs around $2.10 a litre and could surge past its April record of $2.28 a litre in the coming weeks, De Haan said.

“Diesel is the fuel that powers much of the global economy. Such is true for Canada as well, from trucks to tractors and trains,” he said.

“The Canadian economy moves with diesel, and so the surge in the price of diesel is problematic.”

Global oil prices have been elevated since the U.S. and Israel launched their war on Iran in late February, causing one fifth of the globe’s oil tanker shipments to grind to a halt through the Strait of Hormuz, a vital waterway that links the Persian Gulf to the open sea.

Disruptions have spread to another major Middle East choke point — the Bab el-Mandeb Strait connecting the Red Sea to the Gulf of Aden. Yemen’s Iran-backed Houthi rebels said Thursday they attacked two Saudi oil tankers in the Red Sea.

Ukrainian attacks on Russian refineries are also cutting the supply of diesel and jet fuel to global markets, De Haan added.

The fuel price jolt comes in the thick of the high-demand summer driving season. With travel plans locked down, De Haan said there likely won’t be an immediate change in how much gasoline Canadians buy.

“I don’t think that we’re going to see a significant drop in demand until after the summer driving season is over, until after Labour Day,” he said.

“Then we’re likely will start to see a potentially sizable drop in gasoline demand as Canadians get back to the grind, as schools reopen.”

This report by The Canadian Press was first published July 23, 2026.

Lauren Krugel, The Canadian Press

by The Canadian Press

Fuel costs on the rise as latest geopolitical turmoil drives up crude oil prices

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