CANADA VIBES NEWSROOM · ÉDITION DU MATIN | MORNING EDITION — Thursday, July 23, 2026, 7:00 AM ET

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U.S. forces carried out a new round of strikes on Iranian military targets Wednesday, the 11th consecutive night of operations, while Tehran struck back at American bases in Kuwait, Bahrain and Jordan. Oil prices surged on fears of disruption to two critical energy corridors.

According to U.S. officials cited by several outlets, Wednesday’s strikes marked the 11th straight night of military action against Iran. In retaliation, Tehran targeted American bases in Kuwait, Bahrain and Jordan on Tuesday, including drone strikes that damaged Kuwaiti power infrastructure, raising fears of electricity rationing in the country.

U.S. Defense Secretary Pete Hegseth told Congress the cost of the conflict has now topped $37 billion US, an increase of nearly $8 billion since the last public estimate. U.S. officials have also downplayed the chances of new peace talks in the near term.

Oil markets reacted sharply: Brent crude jumped nearly 5 percent to top $95 US a barrel for the first time in almost six weeks, while U.S. crude (WTI) closed up 2.9 percent at $86.83 US. Concerns center on potential disruption to the Strait of Hormuz and surrounding shipping routes.

A prolonged spike in oil prices could feed through to gas prices in Canada and add to inflationary pressure — a risk the Bank of Canada explicitly flagged in its most recent rate announcement on July 15.

What to watch

Any further strikes or retaliation in the region, oil price movements, and possible knock-on effects for gas prices in Canada in the coming weeks.

Sources

• CNBC, “Oil prices rise slightly after US announces new round of strikes on Iran”
• Al Jazeera, “Oil prices jump as US and Iran trade attacks over Strait of Hormuz”
• NBC News, “Oil above $95 as US downplays Iran talks, Houthis threaten trade”