Canadian Oil Firms Gain from War Prices but Keep Plans Unchanged

Canadian oil and gas producers are reaping higher profits from a sharp rise in global commodity prices triggered by the ongoing Middle East war, but executives say the conflict has not prompted changes to their near-term investment strategies.

The war, which began in late February 2026 when the United States and Israel launched attacks on Iran, has severely disrupted energy supplies. A U.S. military blockade of Iranian ports has halted tanker traffic through the Strait of Hormuz, a vital chokepoint for one-fifth of the world's oil and liquefied natural gas shipments. This has driven West Texas Intermediate crude prices up nearly 40 percent from pre-war levels, trading around US$90 to US$100 per barrel as of mid-April, with peaks approaching US$120. Natural gas prices have also soared in Europe and Asia following the knockout of output in Qatar, though prices in Alberta remain subdued due to a mild winter reducing domestic heating demand.

At the 2026 BMO CAPP Energy Symposium in Toronto this week, leaders from major companies emphasized caution amid the uncertainty. Jon McKenzie, chief executive of Cenovus Energy Inc., one of Canada's largest oilsands producers, said the firm...