FREDERICTON — The drop in gas prices across most Atlantic provinces on Friday won’t last because the Iran war is likely to continue disrupting supply chains and driving up costs, according to a New Brunswick-based economist.

Constantine Passaris, an economics professor at the University of New Brunswick, suggests that there is nothing reassuring about the peace talks between the United States and Iran.

“Missiles are still flying all over the place, so it’s not a permanent deal or ceasefire that will last very long,” Passaris said.

“And that’s what is causing me concern and anxiety that oil prices will continue with their upward peak after this lull of the next few days.”

Oil prices have surged as shipping through the Strait of Hormuz — a waterway linking the Persian Gulf to the Gulf of Oman — has essentially stalled since the war between Iran and the U.S. and Israel began in late February.

Canada’s four Atlantic provinces have regulators that, depending on the province, determine the price floor or ceiling — or both — for gas prices on a weekly basis, which is unlike any other region of the country.

The independent provincial boards set the rates using formulas that take into consideration global markets, supply and demand dynamics and taxes.

The regulators, which typically lag in reaction to markets, started making cuts three days after benchmark prices eased Wednesday amid news of a two-week ceasefire deal between Washington and Tehran.

Newfoundland and Labrador’s public utility regulator led the way Friday with a cut of 13.5-cents per litre of regular gasoline that brought down the price at many stations to below $2.

In New Brunswick, the maximum price of regular self-serve gasoline dropped by five cents per litre to cap out at 189.5 cents. Nova Scotia’s Halifax region saw a 1.7-cent decrease in its weekly update, with the minimum price set at 185.4 cents per litre. All six of its petroleum price zones were below 190 cents.

Prince Edward Island was an outlier as its minimum self-serve gasoline price remained the same as a week ago at 198.3 cents per litre.

The Maritimes gas prices on Friday remained far higher than the 178.4 cents per litre national average recorded by CAA Canada.

Most of the regulatory boards were set up over two decades ago with the goal of restoring consumer confidence amid wild swings in gas prices, according to the Atlantica Centre for Energy.

The nonprofit centre describes itself as a proactive “voice of energy” that brings together industry, government, education and research sectors.

By setting a price every week — with the exception of off-schedule emergency changes such as those occurring recently amid the Iran war — the regulators aim to provide stability for rural gas stations vulnerable to fluctuations.

Regulators also require cost breakdowns that proponents say creates transparency around the profit margins wholesalers and station owners make.

Analysts will be watching closely Saturday as the U.S. and Iran hold high-level negotiations in Pakistan. Meanwhile, markets were on edge Friday as traffic through the Strait of Hormuz remained at a near standstill.

Brent crude oil, the international standard, has gone from roughly $70 per barrel before the war in late February to more than $119 at times. Brent fell 0.5 per cent to $95.47 on Friday.

Western Canadian Select remained above $84 per barrel late Friday afternoon, continuing to boost Alberta’s oil-dependent economy.

Meanwhile, back in the Maritimes, economist Passaris said eastern Canadians should take advantage of lower prices over the next few days.

“Not only fill up your car but fill up any empty cans that you have,” Passaris said.

“Because we’re in for a bumpy ride over the next couple of months and the worst, in my opinion, is not over.”

This report by The Canadian Press was first published April 10, 2026.

— with files from The Associated Press

Eli Ridder, The Canadian Press