Cyberattacks, Hormuz Tensions, and Soaring Oil: Inside Day 13 of the US-Israel War on Iran
Cyberattacks on Gulf financial systems, escalating tensions in the Strait of Hormuz, and oil prices approaching multi-year highs defined March 12, day 13 of the US-Israel military campaign against Iran, as a conflict with deepening global consequences.
Iran has responded to the air campaign targeting its nuclear and military infrastructure with a layered strategy that goes well beyond traditional military retaliation. Cyberattacks attributed to Iranian state actors have disrupted banking systems in Bahrain and UAE, while drone and missile salvos have targeted oilfield infrastructure in Saudi Arabia and fuel tanks in Bahrain.
The Strait of Hormuz: The World's Choke Point
The Strait of Hormuz, the narrow waterway through which approximately 20 percent of globally traded oil passes daily, has become the conflict's most economically consequential front. Iranian naval vessels have conducted what US officials describe as "harassment operations" against commercial shipping, and at least two tankers have diverted away from the strait entirely.
Shipping insurance premiums have spiked to levels not seen since the height of Houthi attacks on Red Sea shipping in 2024, prompting major energy companies to begin contingency routing around Africa, adding weeks and hundreds of millions of dollars to delivery timelines.
Oil at Multi-Year Highs
Brent crude climbed past $110 USD per barrel this week, with analysts projecting further gains if the Hormuz situation deteriorates. Energy economists warn that a full blockade or sustained disruption of the strait could push prices to historic levels within days.
What It Means for Ottawa and Canada
For Canadians, the pain is already showing at the pump. Ottawa gas stations are averaging above $1.90/L, with analysts warning of further increases if the conflict extends through spring. Heating oil costs for eastern Canadian homes have also jumped.
There is, however, a complex Canadian silver lining: Alberta and Saskatchewan oil producers are benefiting from the price surge, and there are renewed calls from the energy sector for the federal government to expedite pipeline approvals and LNG export capacity to allow Canada to supply global markets that are increasingly desperate for non-Middle East supply.
The Bank of Canada is watching carefully. A sustained oil price shock risks reigniting inflation at a moment when the central bank had been carefully managing its rate path downward.
Source: Al Jazeera
