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Oil price shocks have exposed car‑dependent cities. Here’s what governments can do

32 0
28.06.2026

The recent Israeli-United States war with Iran sent oil prices soaring worldwide, and Canada was no exception. In some regions, gasoline passed $2 per litre.

The newly signed but fragile memorandum of understanding between Iran and the U.S. offers some hope for stability, but sustained relief is unlikely to come quickly. The backlog of ships trapped behind the Strait of Hormuz will take time to clear.

Read more: The Strait of Hormuz is reopening, but global shipping won’t return to normal for months

Plus, there is extensive damage to oil and gas infrastructure in the Persian Gulf, which continues to strain output. The International Energy Agency has described this situation as the largest supply disruption in the history of the global oil market.

This price shock exposes a deeper vulnerability in Canadian cities: their dependence on cars. Around 80 per cent of commuters rely on private vehicles — 95 per cent of which are powered by internal combustion engines, driving demand for roughly 43 million cubic metres of gasoline each year.

Transportation accounts for a significant portion of household spending, particularly in car-dependent areas. When fuel prices rise, households have few alternatives and must pay the cost.

Cities built around a single transportation option, like private vehicles, are more........

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