Gas prices in the Greater Toronto Area are surging as tensions escalate following a week of war between Iran and a coalition led by the U.S. and Israel, with analysts warning drivers could see another spike at the pumps by the weekend.
Regular gasoline could climb another six to seven cents a litre by Saturday, analysts say, after prices across the GTA already jumped about 15 cents — more than 10 per cent — since the conflict erupted last weekend.
The surge follows a major strike by U.S. and Israeli forces on Saturday that killed Iran’s Supreme Leader, Ali Khamenei.
Drivers are in for a rough ride the longer the conflict continues and the more countries that become involved, warned Roger McKnight, chief petroleum analyst for En-Pro.
“Geography is taking centre stage due to the importance of a crucial global crude oil conduit: the Strait of Hormuz, the passage of which is controlled by Iran,” McKnight says. “Any restriction of tanker movement, whether in fact or rumoured, will increase the price of crude.”
“This could all be reversed should the political temperature be reduced. But right now, the pot is on full boil.”
