Ontario gas prices rose 5 cents Friday amid Middle East tensions, slight reprieve expected
Prices climbed as renewed U.S.-Iran attacks and uncertainty impact costs, though U.S. efforts to suppress prices via market trading may bring relief this weekend.
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Ontario gas prices rose about 5 cents per litre for gasoline and 13 cents for diesel on Friday as renewed attacks and uncertainty between the U.S. and Iran impact global energy costs, according to Dan McTeague, president of Canadians for Affordable Energy.
The rising prices can be credited to renewed attacks and ongoing questions about whether a ceasefire can be reached between the nations. Back-and-forth attacks restarted this week after President Donald Trump said Iranian attacks on ships in the Strait of Hormuz signalled the end of a fragile ceasefire.
However, those costs might be pushed down as American organizations such as the U.S. Treasury try to keep energy prices down by buying "short positions"—a stock market strategy where investors buy and sell assets quickly in hopes of repurchasing them at lower prices.
"They are trying their very best for political reasons to keep the price of energy down," McTeague said, suggesting the Trump administration's interest in maintaining low fuel prices heading into midterms plays a role.
McTeague expects a slight reprieve with a 1-cent drop on Sunday, though En-Pro International predicted a 3-cent drop into the weekend. Current costs remain about 30 cents higher than this time last year, despite federal efforts to keep prices down. Supply remains historically low and demand extraordinarily high, McTeague warned, setting the stage for eventual price corrections when markets inevitably adjust.
