Gas prices in Canada set to rise as Trump says peace with Iran is ‘over’

Gas prices are likely going to tick up once again in Canada, according to an analyst, as a signed peace agreement between the U.S. and Iran appears to be unravelling.

Oil prices were spiking nearly five per cent Wednesday morning from a day earlier, with the price for West Texas Intermediate hovering around US$73.60 per barrel as of publication. At the same time, Brent crude oil in Europe was US$73 per barrel, up more than three per cent from Tuesday.

Higher oil prices typically result in more expensive fuel, including for consumers filling up at gas pumps in Canada.

The national average for regular gas in Canada, as of publication, sits at an average of close to $1.64 per litre, according to CAA. That’s up nearly four cents from Tuesday.

Global crude oil prices are largely determined by expectations of supply and demand. With the Middle East being one of the main sources of the world’s oil supply, any escalation in conflict risks jeopardizing that supply.

U.S. President Donald Trump on Wednesday threatened to attack Iran again after saying an initial ceasefire deal with the Islamic Republic was “over,” though he has not made clear whether Washington would be returning to full-scale war with Iran.

This comes after the U.S. on Tuesday revoked Iran’s licence to sell oil following reports that three tankers were attacked in the narrow Strait of Hormuz shipping channel.

Speaking on the sidelines of a NATO summit in Ankara, Trump slammed Iranian officials for what he described as not sticking to the deals they negotiated and warned that the United States will likely engage in additional strikes on Wednesday night after U.S. forces carried out attacks the previous day.

“I’ll give a little warning: We’re going to hit them hard tonight,” Trump told reporters at the NATO summit in Turkey.