Straight Outta Hormuz

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The Strait of Hormuz is a narrow 34-kilometre-wide channel between Iran and Oman.

It isn’t just another shipping lane.

ICYMI: It is the single most important energy corridor on the planet.

Every day, or every normal day, that is, roughly 20 million barrels of crude oil and petroleum products pass through those narrow waters, accounting for about 27% of the world’s maritime oil trade.

Iran’s Islamic Revolutionary Guard Corps and the country’s new Supreme Leader have both declared the strait “closed,” threatening to fire on any vessel attempting to pass, slamming the door on roughly a quarter of the world’s seaborne oil trade.

Iranian forces have carried out at least 25 attacks on vessels in the Gulf and the Strait of Hormuz.

Last week, Iran used a remote-controlled boat laden with explosives to damage a crude oil tanker anchored in Iraqi waters.

Daily transits through the strait have fallen from an average of 84 ships to fewer than 10.

Ships are not shipping.

Crews are not crewing.

Oil is not… You get the idea.

Because of the closure and the attacks, the cost of shipping oil has risen abruptly.

War risk insurance premiums for tankers venturing near the Persian Gulf have surged by 300% since the conflict began.

Some insurers have stopped offering coverage altogether.

The US International Development Finance Corporation (DFC) announced a $20 billion maritime reinsurance program to keep the oil flowing.

Chubb is the lead underwriter.

The Donald also floated the idea of US Navy escorts for commercial vessels (because he’s a fan of escorts).

The US Navy responded, saying that’s not possible.

For most people, the immediate and painful impact of the Hormuz crisis will be felt at the gas pump.

In the US, the national average price for a gallon of regular gasoline climbed to $3.50 per gallon as of the week ending March 9, up roughly 56 cents, or about 19%, from the week before the conflict began.

Mark Zandi, chief economist at Moody's Analytics, wrote in a thread on X on Sunday, that rising oil and gas prices tied to Middle East turmoil are likely to squeeze lower- and middle-income Americans and weigh on consumer sentiment.

“As long as the Strait of Hormuz remains impassable for tanker traffic, the higher prices will go, and the more economic damage will be wrought,” he wrote, adding that Americans could soon be paying $4 a gallon for fuel.

West Texas Intermediate crude, the US benchmark, has risen approximately 41% since the airstrikes on Iran began, to nearly $95 a barrel. At its peak, Brent crude surpassed $126 per barrel, a level not seen in years.

In Canada, the story is much the same. The national average price for regular gasoline hit C$1.54 per litre as of early March, up more than 20 cents in a single week, according to CAA.

Diesel, the fuel that powers the trucks and trains that move goods across the country, has risen even more sharply.

“The spike in energy costs won’t just be felt at the pump. It will be an added layer of costs and complexity throughout our economy, impacting everything from jet fuel to trucking and shipping costs,” said Bryan Detchou, a senior director at the Canadian Chamber of Commerce. “Rural communities, where diesel is at times essential, may feel this particularly hard."

In response to the war and the Hormuz crisis, the International Energy Agency recommended releasing 400 million barrels of oil, the largest such move in its history, to help rein in energy prices.

The proposed release is roughly equal to ‌four days ⁠of global production and 16 days of the volume of crude that transits through the Gulf, Macquarie analysts estimated.

“If that doesn’t sound like much, it isn’t,” the analysts said.

The surge in oil prices is a direct threat to automakers’ profitability, especially those that have bet heavily on large, fuel-hungry trucks and SUVs.

Ford, General Motors, and Stellantis have built their business models around full-size pickups and SUVs, which generate some of the industry’s highest profit margins.

When gas prices climb, buyers sometimes delay purchases of larger vehicles or consider alternatives with lower fuel consumption.

Analysts say the conflict would need to last three to four months before producing a measurable effect on overall vehicle sales.

But if the current situation persists, the impact on showroom traffic and buying patterns could be significant.

IMHO

The current situation in the Strait of Hormuz is a stark, painful reminder of the geopolitical risks inherent in our dependence on fossil fuels.

Our new war in the Middle East has sent prices soaring, showing how much the world continues to depend on oil and gas. But it also shows us something else.

The transition to electric vehicles, to renewable energy, to a more resilient and diversified energy system, is not just an environmental imperative. It is an economic and national security imperative.

The faster we move in that direction, the less vulnerable we are to the kind of shock we are experiencing right now.

So yes, your next fill-up is going to hurt.

Your next car might cost more.

And the next few months will be economically uncomfortable for many people in Canada, the US, and around the world.

But perhaps this is the wake-up call we needed. A chance to get serious about energy independence, to invest in new technologies, and to build a more resilient and sustainable transportation future.

MG unveils its first electric SUV with a semi-solid-state battery. electrek.co

VW reclaimed car sales dominance in China, the world’s largest auto market, in the first two months of 2026, overtaking local EV champion BYD. reuters.com

Toyota has officially opened pre-sales of its new all-electric bZ7 in China, priced between 179,800 and 239,800 yuan for the 600 Pro and 710 Ultra LiDAR variants, respectively, or roughly $26,000 to nearly $34,800, depending on the trim level. carscoops.com

BYD is considering entering competitive motorsport, including Formula One and endurance racing, to boost the Chinese brand’s appeal globally. bloomberg.com

BYD is also considering building a plant in Canada. bloomberg.com

The five groups representing automakers, car dealers and parts manufacturers called for maintaining ​a 2025 Commerce Department cybersecurity regulation that effectively keeps nearly all Chinese vehicles ⁠out of the US market. reuters.com

Tesla is preparing to build its largest Supercharger yet, having recently submitted plans for a Supercharger station with over 400 stalls, which would dwarf its 168-stall location in Lost Hills, California. teslarati.com

Starlink rival Amazon Leo is calling on the Federal Communications Commission to shoot down SpaceX’s 1 million-satellite proposal for orbiting data centers, going as far as to claim the project would take “centuries” to deploy. pcmag.com

A new coalition of companies, including Google and Tesla, will address energy affordability by tapping into underused electricity grid capacity. theverge.com

Sunday Inc. has raised $165 million to build a robot capable of performing tasks like clearing a dinner table and doing laundry. bloomberg.com

A humanoid robot gets arrested by police after confronting an elderly woman in Macau. news.com.au

Ukraine can now make drones without Chinese components. nytimes.com

Canada decides against building killer robots. thelogic.co

Koenigsegg, the Swedish maker of ultra-luxury sports cars, is considering an initial public offering. bloomberg.com

Toyota will produce nearly 40,000 fewer ‌vehicles bound for Middle Eastern markets due to logistical concerns stemming from the ​US-Israeli campaign against Iran. reuters.com

VW decides not to dive into a multibillion-dollar submarine deal between the Canadian government and Germany’s Thyssen Krupp Marine Systems. autonews.com

The 2027 Ram ProMaster City marks the return of the brand’s commercial van, though it’s bigger than its predecessor. caranddriver.com

Ford announced a new AI-powered service for its commercial fleet and telematics software customers called Ford Pro AI. The generative AI system analyzes data from commercial vehicles, including vehicle speed, seat belt activity, and engine health, and converts it into actionable items for fleet managers. theverge.com

Honda is cancelling its Zero Series SUV and Saloon, as well as the Acura RSX EVs, citing an “extremely challenging earnings situation.” theverge.com, mashable.com

Honda’s $15.7 billion writedown of its EV business is not just a painful reversal of its US strategy; it also highlights more challenges to come from China, where it faces a widening technological gap. reuters.com

Toyota issued a recall for 550,007 Highlander and Highlander Hybrid SUVs due to a rear-seat issue. caranddriver.com

Hyundai stopped sales of some new Palisade SUVs in the US ‌and Canada, and will recall them over an issue with power seats following an incident in which a two-year-old girl was killed. reuters.com

Lucid Motors revealed that it will launch three new models on a less expensive mid-size platform with a new powertrain, with the first arriving next year. caranddriver.com

Former Amazon VP Peter Faricy assumed the role of CEO at Slate Auto. newsweek.com

Uber founder Travis Kalanick has a new company called Atoms, focused on robotics, which, according to its website, will operate in the food, mining, and transportation industries. techcrunch.com

Uber is relaunching a robotaxi service with the Hyundai-backed Motional in Las Vegas. bloomberg.com

Zoox expands robotaxi testing in Arizona and Texas. theverge.com

Canadian mobility start-up NorthForge has emerged with an ambitious goal: to develop a purpose-built electric military motorcycle designed for modern battlefields and extreme climates. electrek.co

US Transportation Secretary Sean P. Duffy and the FAA announced proposals for a new Advanced Air Mobility and Electric Vertical Takeoff and Landing (eVTOL) Integration Pilot Program. transportation.gov

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