Metro Vancouver gas prices surge to $1.97 a litre as Iran tensions drive global oil volatility

Metro Vancouver's average gas price climbed to $1.97 a litre around midday July 16, as a collapsed peace deal between the U.S. and Iran pushed global oil prices higher.

The breakdown of negotiations this week has renewed conflict near the Strait of Hormuz, choking off oil movement and limiting supply. Analysts expect the spike to continue for weeks, with uncertainty around whether the U.S. will escalate attacks on Iran or whether de-escalation might ease prices.

Patrick De Haan, a petroleum analyst with Gas Buddy, said the situation remains "very unpredictable" but prices will likely worsen before they improve. Dan McTeague, executive director of Canadians for Affordable Energy, predicted a "reckoning" by late July. He cited fuel demand in China, shrinking U.S. emergency oil reserves, and Ukrainian drone strikes on Russian refineries as additional pressures, forecasting prices could reach $2.10 or $2.15 a litre—approaching the record high of $2.24 set in spring 2022.

Vancouver's rate remains higher than the national average of $1.68 as of Wednesday. De Haan suggested that easing driving habits—smoother acceleration, lower speeds, and cruise control—could stretch fuel economy by 50 to 100 kilometres per tank, helping reduce the impact on summer travel.