Navigating the Impact of the Iran War

Airline Disruptions, Inflation, and Business Support

Toronto, ON – April 26, 2026

The ongoing conflict in Iran has triggered significant ripple effects across Canada’s economy, affecting airlines, trade, inflation, and security. We want to keep you informed and offer support as you navigate these challenges.

Canadian Airlines Cut Routes and Public Reaction

Air Canada, Air Transat, WestJet, and other carriers have suspended or reduced several domestic and international routes due to soaring jet fuel prices, which have doubled since the start of the Iran conflict. Key routes to New York (JFK), Salt Lake City, Fort McMurray, and Yellowknife are among those affected, with some planned resumptions in late 2026 or 2027.

Airlines have also increased baggage fees and introduced fuel surcharges, impacting travel costs for both businesses and consumers. The public is reacting with concern, as travel options shrink and prices rise, prompting many to delay or cancel trips.

Seizure of Vessels and Impact on Canadian Businesses

The closure and blockade of the Strait of Hormuz, combined with the seizure of vessels, has disrupted global oil shipments, causing oil prices to surge and affecting Canadian logistics, manufacturing, and transportation sectors. Businesses report doubling fuel bills and are forced to pass on surcharges to customers, with some absorbing costs to remain competitive.

Negotiations in Pakistan Put on Hold

Diplomatic efforts to resolve the conflict have stalled, with talks in Pakistan postponed following recent military actions. This uncertainty prolongs the disruption to global supply chains and energy markets, further impacting Canadian businesses.

IRGC Canada Blind Spot and Ottawa’s Response

Canada has faced criticism for its slow response to Iranian Revolutionary Guard Corps (IRGC) activity. While the IRGC is now listed as a terrorist organization, enforcement remains limited, with only a handful of deportations and ongoing challenges in border security. Ottawa is boosting monitoring and coordination among agencies to address threats to the Iranian diaspora and Canadian interests.

Ottawa Boosts Monitoring of Iran’s Threats

Federal officials have ramped up surveillance of Iranian threats, especially targeting diaspora communities. Agencies are working closely to detect and respond to security risks, but more resources and dedicated screening are needed to close loopholes and protect Canadian businesses and individuals.

Canada’s Inflation Rate and Price Hikes

The Iran war has driven Canada’s annual inflation rate to 2.4% in March, with gasoline prices surging 21.2% month-over-month—the largest increase on record. Food prices rose 4.4% year-over-year, and transportation costs climbed 3.7%. Businesses and consumers expect further price hikes if the conflict persists, with many households and firms delaying major purchases and investments.

Government Relief Measures

The federal government has introduced a temporary pause on the excise tax for gasoline and diesel, reducing prices by up to $0.10 per litre for gas and $0.04 for diesel until September 7. This measure aims to provide immediate relief, though experts caution that global oil price volatility may offset these savings. Additional provincial tax cuts and incentives are encouraged.

GTA Strategies: Ready to Assist

GTA Strategies is prepared to help your business adapt to these evolving challenges. Our team offers:

• Strategic planning for supply chain disruptions and cost management
• Guidance on government relief programs and compliance
• Risk assessment and security solutions for international operations
• Support for navigating trade negotiations and regulatory changes

We understand the pressures you face and are committed to providing actionable solutions tailored to your needs. Please reach out to discuss how we can support your business during this period of uncertainty.