Dhows are anchored off Khasab, on northern Oman’s Musandam Peninsula overlooking the Strait of Hormuz on June 24, 2025. World markets fear that Iran could shut the Strait of Hormuz, a chokepoint for about one-fifth of the world’s oil supply. Giuseppe Cacace/AFP via Getty Images
Iran has effectively shut down the Strait of Hormuz and targeted ships and oil infrastructure in response to the attacks launched by the United States and Israel over the weekend, which will have impacts on Canada’s energy sector as well as fuel prices.
Analysts have previously predicted that oil could hit more than US$100 a barrel in the event of the Strait of Hormuz being closed, as it serves as a key passageway essential for global energy supply. These higher energy prices would likely trickle down into higher food costs for Canadians.
