Global oil prices experienced a surge, with Brent crude hitting over $126 per barrel, its highest level since March 2022. The market fluctuated due to stalled U.S.-Iran talks, casting doubt on the reopening of the Strait of Hormuz and a permanent resolution to the Middle East conflict. Brent crude for June delivery has since stabilized around $111 per barrel, significantly higher than the pre-war price of $70 per barrel.
Simultaneously, gasoline prices continue to rise, with the average price in Canada reaching $1.830 per liter, up by 4.5 cents from the previous day and nearly 48 cents higher compared to a year ago. Notably, British Columbia recorded the highest prices, averaging just above $2 per liter. Forecasts indicate further increases, with the Greater Toronto Area expected to reach $1.899 per liter, Halifax at $1.897, and Edmonton at $1.859.
In the United States, the average gas price stands at approximately $4.375 per gallon. The ongoing conflict between the U.S. and Iran, exacerbated by President Trump’s rejection of Iran’s proposals regarding the Strait of Hormuz, has contributed to the market’s uncertainty and the spike in oil prices.
Despite the volatility, Wall Street remained relatively stable, buoyed by positive profit reports from U.S. companies. North American stock markets saw gains, with the S&P 500 surpassing its previous all-time high, the Dow rising by 1.6%, and the Nasdaq composite climbing by 0.9%. Notable companies such as Caterpillar, Eli Lilly, O’Reilly Automotive, and Royal Caribbean reported profits exceeding analysts’ expectations, further boosting market confidence.
In the bond market, Treasury yields eased following the retreat of oil prices from their overnight highs. Internationally, stock market performances varied, with the FTSE 100 in Britain rising by 1.6%, Germany’s DAX by 1.4%, and France’s CAC 40 by 0.5%. Meanwhile, Asian stocks experienced mixed results, with Hong Kong’s Hang Seng declining by 1.3% and the Shanghai Composite index closing slightly higher by 0.1%.