Oil, gas surge as Iran conflict disrupts Middle Eastern flows
BNN Bloomberg
Oil and natural gas prices surged on Monday as Israeli and U.S. strikes on Iran and retaliation by Tehran forced shutdowns of oil and gas facilities across the Middle East and disrupted shipping in the crucial Strait of Hormuz.
A sustained rise in oil prices would threaten a global economic recovery, reignite inflation and could push up U.S. retail gasoline prices, a risky outcome for U.S. President Donald Trump and his Republican Party ahead of midterm elections this November.
Brent crude futures LCOc1 rose as much as 13 per cent to US$82.37 a barrel, their highest since January 2025, before retreating to trade up $6.27, or 8.6 per cent, at $79.14 a barrel at 1403 GMT.
U.S. West Texas Intermediate crude CLc1 was up $5.05, or 7.5 per cent, at $72.07, having risen more than 12 per cent to $75.33, its highest since June.
“The latest move reflects uncertainty around the scale and duration of the current conflict and recognizes that Iran’s political future may have major implications for the stability of the Middle East,” said James Hosie of Shore Capital.
Oil’s surge on the restart of trading after the weekend, however, was smaller than expected. On Sunday, some analysts had predicted oil would open above $90 a barrel and closer to $100.
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
The Trump administration this week stepped up its ambitious effort to replace about US$1.6 trillion in lost tariff revenue that was eliminated by the U.S. Supreme Court’s decision to strike down a range of the president’s import taxes.
The Bank of Canada will be balancing a last-minute flood of economic data with uncertainty around trade and war in the Middle East as it prepares to make its second interest rate decision of 2026 this week.
The Trump administration has expanded its trade investigations to 60 countries, including Canada, in an effort to shore up the president’s tariff policies.
Canada has committed to supplying 23.6 million barrels of oil as part of a larger International Energy Agency plan to help stabilize energy markets as the war in the Middle East continues.
Canada’s energy-heavy index may cushion stocks from oil shocks, but rising crude prices could boost inflation and pressure consumers.
Venture Global will proceed with phase 2 of its CP2 liquefied natural gas project in Louisiana, the company said on Friday.
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
Telus Corp.’s global IT and customer services arm says it’s investigating a breach of its systems.
When Jensen Huang strides onto the stage of a packed hockey arena to kick off Nvidia’s annual developer conference on Monday, he is likely to reveal products and partnerships geared toward keeping the AI chipmaker atop a growing array of competitors.
The current Canada Revenue Agency (CRA) crackdown on Canada’s growing army of gig workers has gone beyond Uber drivers, contractors, consultants, handy-people and freelancers.
The U.S. Trade Representative’s office said late on Thursday it had begun Section 301 unfair trade practices probes of 60 economies in relation to what it called failures to take action on forced labor.