Both the S&P 500 and S&P/TSX Composite Index saw significant jumps Monday after President Donald Trump said the United States has talked with Iran about a possible end to their war. Faisal Karmali, a portfolio manager, and wealth advisor at CIBC Popowich Karmali Advisory Group says markets are very much in sync with Trump’s rhetoric towards the conflict ending. “It’s going to go in every direction depending upon the rhetoric, the conversation and potentially negotiation and agreement at some point in time,” said Karmali. “You’re going to see a lot of swings in the market reacting to what could be versus what is and that’s what we’re all waiting for.” The S&P 500 Index jumped 1.5 per cent on Monday while the and S&P/TSX Composite Index was up over two per cent as of 1:30 p.m. MT. Karmali advised people who are not needing money for the next 12 months to buckle up for bumpy ride. “Make sure you understand the volatility you could be exposed to,” he said. The swing in the markets came as WTI crude oil dropped over 10 per cent, below 89 dollars a barrel. According to Dan McTeague, president of Canadians for Affordable Energy, gasoline prices are ranging from $1.62 to $1.75 per litre in Calgary and the surrounding area. “A lot of gas stations in Calgary have been selling and surrounding areas, Airdrie and whatnot have been selling gasoline below that cost,” said McTeague. “Nevertheless, some of the stations are as high if you look at them.” The prices still have a ways to go before what Calgarians experience at the pump back in April 2023, when prices were near $1.90 a liter in June and July 2022 when the Ukrainian war started, according to McTeague. The current prices Calgarians are facing could end with the recent negotiations Trump claimed he has had with Iranian officials. “Come Wednesday, gas prices are going to fall net $0.14 or more a litre. Diesel could fall as much as $0.19 a liter. So, if you’re near fueling station or gas station, keep driving. “Don’t gas up until the one minute after midnight Wednesday, and you’ll save a lot of money.” Under the province’s fuel tax relief program, fuel tax is reduced once the average oil price for a quarter’s review period reaches $80 a barrel. However Albertans should not be expecting relief from the province just yet. “The average price over the 20 trading days leading up to March 16 was $75.25,” McTeague said. “Therefore, the $80 threshold required to trigger relief from April 1 to June 30 was not reached. The review period for the quarter beginning on July 1 will run from May 18 to June 15.”
