The recent military strikes by the United States and Israel against Iran have ignited a geopolitical firestorm with far-reaching economic consequences. While the conflict unfolds thousands of kilometres away, its impact is being felt acutely in Alberta, where oil prices and the real estate market are responding to the global shockwaves. Oil Prices Spike on Supply Fears The primary driver of economic uncertainty is the disruption to the Strait of Hormuz, a critical maritime chokepoint through which approximately 20% of the world's oil supply transits.1•2 Following the strikes, tanker traffic through the strait has effectively stalled due to the withdrawal of commercial operators and insurers, creating a de facto closure for most global shipping.2•3 This has pushed Brent crude prices up significantly, from around $70 per barrel before the conflict to approximately $78-$82 in early March t...
