The Bank of Canada held its key interest rate at 2.25 per cent on Wednesday, saying that higher oil and gas prices from the war in the Middle East are likely to boost global inflation but that it’s too soon to assess the conflict’s impact on the Canadian economy.

Gas prices worldwide have soared since the U.S. and Israel launched strikes on Iran, and the widening war has pinched tanker traffic in the crucially important Strait of Hormuz shipping route. Ride-hail drivers, many of whom are on the road for hours a day, say they’re being hit hard by the extra expense.

The ongoing U.S.-Iran war is causing diesel prices to spike across the country, climbing nearly 30 per cent since the beginning of March. In some parts of Quebec, a litre of diesel is selling for almost $2.50.