In 2026, turmoil in Iran has caused a significant disruption in global oil markets, leading to soaring gasoline prices in Canada and beyond. This situation mirrors the events of 1979, triggered by the Iranian Revolution, which resulted in a shock to the global oil supply. The sudden shortage prompted panic buying and hoarding of gas worldwide, escalating oil demand.
Calgary economist Peter Tertzakian recently discovered original proofs of gasoline rationing stamps prepared by the Canadian government in response to the crisis. These stamps, entitling holders to 50 litres of gas, were intended to address the oil supply instability. While the rationing stamps were never put into circulation as supply eventually stabilized, they serve as a reminder of the unpredictability of oil shortages.
The current Middle East conflict has further exacerbated the situation, with the U.S. and Israel’s actions in Iran causing a surge in global oil prices. Gasoline prices in Canada have spiked to around $1.68 per litre, from $1.29 last month. Some countries have already implemented measures to hoard and ration gas in response to the crisis.
Looking back at history, Tertzakian highlighted the parallels between the oil crises of the past and the current geopolitical tensions. The possibility of gas rationing becoming a reality in Canada is not off the table, especially in the face of escalating prices and potential global scarcity. The world economy’s heavy reliance on oil commodities underscores the need to consider measures to ensure equitable access to essential resources during times of crisis.