OTTAWA – The ongoing conflict between the U.S. and Iran continues to disrupt global markets and travel, as reported by CBC News during its broadcast on Monday. The conflict, now in its sixth week, has raised concerns about the potential closure of the Strait of Hormuz, a critical waterway for oil and gas transportation, through which approximately a fifth of the world’s oil supply passes.

Oil Price Surge and Travel Disruptions

Oil prices have surged to $112 U.S. per barrel, a significant increase from around $70 per barrel before the conflict began. This increase is prompting airlines in Canada to implement fuel surcharges and extra fees on some bookings, according to the CBC News report. WestJet, Air Canada, Porter and Air Transat are among the airlines adding these charges. While Canadian airlines currently have sufficient jet fuel supply, they are passing on the increased global costs to passengers.

Globally, a lack of jet fuel is already leading to rationing and flight cancellations in some regions. The conflict is effectively closing the Strait of Hormuz, impacting oil and gas transport.

U.S. Ultimatum and Potential Escalation

The U.S. President has issued an ultimatum to Iran, threatening to escalate attacks if the Strait of Hormuz is not reopened. According to the broadcast, the President stated that the U.S. could “knock them out for a loop” and even suggested the potential for widespread destruction of Iranian infrastructure. Iran has responded with defiance, stating that U.S. threats will not affect its offensive.

International Developments

During the CBC News broadcast, it was reported that Iran has presented a new 10-point plan to end the war, which the U.S. has rejected, but negotiations are ongoing. A high-stakes rescue mission within Iran was also detailed, involving the recovery of two American service members after their fighter jet was shot down. The rescue was described as “incredibly brave and courageous.”

Additionally, Israeli jets reportedly struck Iran’s largest petrochemical facility, part of the Pars gas field, and targeted intelligence officers and airports. Iran has promised to retaliate. Reuters reports that Iraq could restore crude oil exports to pre-war levels within a week if the Strait of Hormuz reopens, but relies on verbal assurances from Iran for safe passage.

Humanitarian Concerns and Domestic Crime

The UN official in Cuba warned of a widening humanitarian crisis due to fuel shortages, with impacts on health, water, sanitation, food systems, education, and transportation. In Montreal, an arson investigation is underway following a downtown fire. Police in British Columbia are investigating a spike in grocery store thefts, particularly targeting meat, which may be linked to organized crime groups taking advantage of rising prices. A grocery store owner reported catching a thief selling stolen meat in a hotel parking lot.