A pumpjack draws out oil and gas from a well head near Calgary, Alta., on May 6, 2025. The Canadian Press/Jeff McIntosh
Oil price shocks from the ongoing conflict in the Middle East could raise inflation in Canada by between 1 and 2.3 percentage points, according to a report by Goldman Sachs.
A March 20 report by the multinational investment bank said that over the next year, inflation in Canada could rise by nearly 1 percentage point in a baseline scenario where the Strait of Hormuz—a key waterway for global energy—stays closed for six weeks. Brent crude would average at US$115 a barrel in April but fall to US$80 by the end of the year.
