A new report from Deloitte warns that oil and fuel prices are likely to remain high for the rest of 2026.
The primary driver of this trend is the conflict between the US and Iran which has significantly disrupted global energy supplies.
The conflict has led to the effective closure of the Strait of Hormuz, a critical transit route that handles roughly 20% of the world’s oil and natural gas.
This has caused a massive supply shock pushing prices up by over 50% since late February.
According to the report, North American oil prices are expected to average $85 US per barrel this year, a sharp increase from the $67 average seen in 2025.
Energy analyst Andrew Botterill noted that the market is currently experiencing intense volatility. “There is going to be a lot of pressure on all of our energy needs for this year,” Botterill stated.
He added that while some expect prices to ease in the latter half of the year, consumers should prepare for sustained costs.
“From a consumer standpoint, that is the kind of pressure that we’re going to see in the system,” he explained, noting the impact on gasoline, diesel and jet fuel.
