Prices at many Edmonton gas stations have jumped to about $1.50 per litre for regular gasoline, as the conflict in the Middle East drives up the price of oil.

Wholesale gasoline has risen roughly 20 cents since Tuesday while diesel is up nearly 40 cents — which energy analyst Dan McTeague said has a much wider impact.

“Those prices are going to be making their way throughout the entire economy,”  said McTeague, who is the president of the advocacy group Canadians for Affordable Energy.

“The reality is, diesel is at the core of the global economy — the global economy’s workhorse — and as we’ve seen an increase of about 20-25 per cent of its value just in the past 96 to 120 hours, it’s likely to have a much longer-lasting impact on affordability and inflation in Canada.

“Diesel prices affects everything.”

The jump at the pump coincides with global oil prices, which have soared in the days following the joint attack by the United States and Israel on Iran.

2:09
How the Iran war is disrupting the Strait of Hormuz, oil and gas prices

Iran responded by closing the Strait of Hormuz at the mouth of the Persian Gulf — one of the busiest and most strategically significant shipping routes in the world and a key oil choke point — going so far as threatening to set ships on fire if they enter the strait.

About 13 million barrels of oil per day normally move through the waters — about 25 per cent of global oil shipments. It’s not just oil: about 20 per cent of the world’s total liquified natural gas (LNG) supply also comes through this route.

The closure has disrupted oil and gas shipments from the region and rattled markets around the world.

On Monday, March 2, Brent Crude — the global benchmark — reached about US$79 per barrel before declining slightly, about eight per cent higher than last week’s prices. By Friday, it had jumped up to nearly $93US a barrel.

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Meanwhile West Texas Intermediate, the North American benchmark, started the week at US$71 per barrel — a six per cent increase over the weekend — before ending the week increasing to $90US a barrel.

It’s the biggest weekly gain since Russia invaded Ukraine, said Richard Masson, an industry analyst and former CEO of the Alberta Petroleum Marketing Commission.

“The global energy market right now is in turmoil, nobody knows what’s going to happen next,” Masson said.

For Canada, the conflict is likely to lead to not just higher prices for gasoline and diesel, but increased prices for imported goods, according to Warren Mabee, director of the Queen’s University Institute for Energy and Environmental Policy.

Although Canada is a net oil exporter, Mabee said domestic fuel prices are tied to global benchmarks and reflect international volatility while at the same time, the Canadian oil patch often benefits from higher global prices. Elevated prices can boost revenues and investment in the sector, even as consumers face higher costs at the pump.

It also boosts the Alberta government’s bottom line.

The price of oil tends to make or break the province’s budget, which is heavily reliant on royalties from oil and gas operations in the province.

Last week, the provincial government projected a $9.4-billion deficit for the coming year, based predominantly on what, at the time, were slagging oil prices of US$60.50 per barrel.

1:52
Alberta projects $9.4B deficit with no plan to balance budget

Masson said this week’s increase, if sustained for a length of time, could mean hundreds of millions — if not billions — more into provincial coffers than what was expected when the budget was announced.

So far, though, there’s no sign of operational changes within the private sector.

“We haven’t seen any indication that investment will grow up or jobs will grow, but it means a higher level of profitability for the companies and that translates into higher royalties and taxes,” Masson said.

Alberta’s finance ministry on Friday said in a statement it’s too early to determine whether recent fluctuations will have an impact on the budget.

“Higher prices can support resource revenues if they are sustained, but it’s important to remember that revenues are driven by monthly average prices over time, not daily trading levels.”

Masson said the disruption to shipping and the prospect of reduced flows through key routes will keep upward pressure on global oil prices until the situation eases.

“Until this conflict resolves in a way that we can view Iran as less hostile, I don’t think there are going to be many ships moving through there, so oil prices globally are going to continue to ratchet up as long as this carries on,” Masson said.

McTeague says that means consumer gas and diesel prices will also continue to increase.

“Next week we might see prices go even higher — another 10 to 12 cents at least on the gasoline side, and probably another 20 cents on the diesel side.”

5:01
Analysts expect energy prices to spike as the war in the Middle East drags on

Canada could have avoided being affected so much if it invested more in getting its own oil and gas resources to the global market, McTeague argues.

“An energy-rich country has become consumer poor and has become totally dependent on unreliable outcomes,” he said.

— with files from Lauren Krugel, The Canadian Press

&copy 2026 Global News, a division of Corus Entertainment Inc.

Stocks sank on Wall Street Thursday after the price of oil spiked to its highest level since the summer of 2024 because of the war with Iran.

The S&P 500 fell 0.6% and erased what had been a small gain for the year so far. The Dow Jones Industrial Average briefly dropped more than 1,100 points before finishing with a loss of 784, or 1.6%. The Nasdaq composite slipped 0.3%.

The S&P/TSX composite index was down 332.89 points at 33,609.97.

The losses came as financial markets around the world keep following the cue of oil prices. Sharp increases there are raising worries that a long-term surge could grind down the global economy, exhaust households’ ability to spend and push interest rates higher.

The price for a barrel of benchmark U.S. crude shot up 8.5% Thursday to settle at $81.01 per barrel. Brent crude, the international standard, climbed 4.9% to $85.41 per barrel and is likewise near its highest price since 2024.

Oil prices gave back some of those gains later in the day, which helped stocks in the U.S. moderate their losses at the end of trading. But worries nevertheless remain high about how long disruptions will last for oil production because of the escalating war with Iran.

Prices at U.S. gasoline pumps have already leaped because of them. The average price for a gallon is $3.25, up 9% from $2.98 a week ago, according to auto club AAA.

U.S. President Donald Trump said on Thursday that he was not concerned about rising gas prices, telling Reuters in an exclusive interview that the U.S. military operation was his priority.

“I don’t have any concern about it,” he said when asked about the higher prices at the pump. “They’ll drop very rapidly when this is over, and if they rise, they rise, but this is far more important than having gasoline prices go up a little bit.”

Trump later said further action to reduce pressure on oil was imminent.

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“The oil seems to have pretty much stabilized,” he said during an unrelated event at the White House. “We had it very low, but I had to take this little detour,” referring to the decision to strike Iran.

A senior White House official told reporters the U.S. Treasury Department is expected to announce measures as soon as Thursday aimed at combating rising energy prices, including potential action involving the oil futures market.

If oil prices spike further, like to $100 per barrel, and stay there, some analysts and investors say it could be too much for the global economy to withstand. Uncertainty about what will happen has caused frenetic swings across financial markets this week, sometimes hour by hour.

2:00
Oil prices surge as Iran war threatens supply

Much will depend on what happens with the Strait of Hormuz. Roughly a fifth of the world’s oil typically sails through the narrow waterway off Iran’s coast.

To be sure, the U.S. stock market has a history of bouncing back relatively quickly following conflicts in the Middle East and elsewhere, as long as oil prices don’t jump too high for too long. That has many professional investors suggesting patience and riding through the market’s swings.

“While further escalation remains a risk, we think the more likely outcome is an increase in market risk aversion that likely lasts only a short time until investors can see a winding down of hostilities,” according to Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

The S&P 500 is down only 0.7% for the week so far, despite its sharp swings, as gains for Big Tech stocks and oil producers have helped to blunt losses across the rest of the market.

Stocks of airlines fell to some of the U.S. market’s worst losses again on Thursday. Higher oil prices are increasing their already big fuel bills, while the war has left hundreds of thousands of passengers stranded across the Middle East.

American Airlines lost 5.4%, United Airlines fell 5% and Delta Air Lines sank 3.9%.

Stocks of smaller companies, meanwhile, took heavy hits. That’s typical when worries are growing about the strength of the economy and about interest rates rising. The Russell 2000 index of the smallest stocks fell a market-leading 1.9%.

Wall Street’s drop would have been worse if not for Broadcom. The chip company’s stock rose 4.8% after it reported stronger profit and revenue for the latest quarter than analysts expected. It’s one of Wall Street’s most influential stocks because it’s one of the biggest by total value, and CEO Hock Tan said it benefited from a 74% jump in revenue for AI chips.

All told, the S&P 500 fell 38.79 points to 6,830.71. The Dow Jones Industrial Average dropped 784.67 to 47,954.74, and the Nasdaq composite slipped 58.50 to 22,748.99.

In the bond market, Treasury yields climbed as rising oil prices put more upward pressure on inflation, which could keep the Federal Reserve from cutting interest rates.

The yield on the 10-year Treasury rose to 4.13% from 4.09% late Wednesday and from just 3.97% before the war with Iran started.

The Fed could keep interest rates high to keep a lid on inflation. But high interest rates would also keep it more expensive for U.S. households and companies to borrow money, which would grind down on the economy.

The central bank had indicated it planned to resume its cuts to interest rates later this year, in hopes of giving a boost to the job market and economy. Because of the war and higher oil prices, traders have pushed their forecasts further into the summer for when the Fed could begin cutting rates again.

In stock markets abroad, indexes rebounded in Asia following historic losses the day before. South Korea’s Kospi soared 9.6% to recover much of its 12.1% plunge from Wednesday, which was its worst drop ever.

But indexes fell in Europe as oil prices began to accelerate. France’s CAC 40 fell 1.5%, and Germany’s DAX lost 1.6%.

AP Writers Kim Tong-hyung and Elaine Kurtenbach contributed. Additional files from Reuters.

&copy 2026 The Canadian Press

The chief executive of Capital Power Corp. is expressing enthusiasm about opportunities to power new data centres in Alberta, as the province prepares to hammer out rules for connecting more projects to the grid without jeopardizing consumer reliability and affordability.

“The market environment is increasingly becoming more attractive for Alberta. The pace at which the announcements are coming out may not be at the pace that the market is expecting,” Avik Dey told analysts on a conference call Wednesday to discuss the company’s fourth-quarter results.

“But I think below the surface, the work that’s being done to facilitate new generation coming in… has been in some ways leading North America.

“We continue to be excited about it, and frankly more excited today than I’ve been at any other point in time.”

Data centres are enormous facilities that house the computing firepower needed for artificial intelligence and other applications. Such operations require massive amounts of energy to run and cool the computer servers.

The Alberta government aims to attract $100 billion in data centre development by the end of this decade, hoping to lure tech behemoths like Meta Platforms Inc.

Some power generators have been looking at opportunities to provide power exclusively to a tech partner, while others have been eyeing options to add more juice to the overall grid.

The province aims to fast track the “bring your own power” proposals through the regulatory process.

1:43
Surging growth continues in Albertas tech sector

The Alberta Electric System Operator is allowing the connection of up to 1,200 megawatts of large-load projects until 2028 — a small fraction of what had been requested — so as not to compromise reliability.

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That capacity has been snapped up by TransAlta and a joint-venture between Pembina Pipeline Ltd. and Kineticor.

The grid operator is consulting industry as it develops a long-term plan to enable more data centre investment without overburdening the province’s power system.

Capital Power has said its Genesee Generating Station west of Edmonton would be an ideal spot for a data centre partner to set up shop.

“I could not be more emphatic about the fact that we think we’ve got a world-class site that can materially increase generation,” Dey said.

He said its access to land, water and transmission infrastructure makes Genesee “probably one of the most attractive generation sites anywhere in North America” with an ability to expand.

In December, Capital Power announced a memorandum of understanding with New York-based Apollo Funds to form a US$3-billion investment partnership to buy U.S. merchant natural gas power assets.

Separately, it said it had entered into a binding MOU to negotiate a 250-megawatt electricity supply agreement with an unidentified investment-grade data centre developer in Alberta with an expected 2028 start date.

1:54
Power grid reliability risks rising as demand outpaces new supply: NERC report

Earlier Wednesday, Capital Power reported a $13-million net loss for the fourth quarter, compared to net earnings attributable to shareholders of $240 million a year earlier.

The loss amounted to 12 cents per share versus a profit of $1.75 per diluted share during the final three months of 2024.

The Edmonton-based utility says its revenues and other income were $1.08 billion, an increase from $853 million in the prior-year quarter

Adjusted funds from operations rose to $244 million from $182 million year-over-year.

&copy 2026 The Canadian Press

By ANGHARAD CARRICK, BUSINESS NEWS EDITOR

Updated: 10:40 EST, 4 March 2026

The energy price cap could rise by more than £150 in the summer if gas prices stay elevated because of conflict in the Middle East, according to an expert forecaster.

Cornwall Insight said a typical dual-fuel household will pay £1,801 under its new forecasts for the price cap between July and September.

It represents an £160 increase from April’s price cap, following sharp increases in gas prices which have surged in recent days as Qatar’s state-run energy business, which accounts for a fifth of the liquified natural gas (LNG) trade, shut down production.

This could translate into much higher energy bills as the UK imports some LNG from Qatar, which is now the world’s second biggest supplier of the gas behind the US.

Earlier this week, Stifel analysts warned that households could pay average bills of £2,500 under the price cap, echoing the 2022 bills spike after Russia invaded Ukraine.

Brace for pain: An average household is expected to pay more for energy this summer

While Cornwall Insight’s prediction is lower, it said that the assessment period for the July price cap had only just begun, and the key issue is ‘how long gas prices stay elevated and how long this period of volatility remains.’

Dr Craig Lowrey, principal consultant at Cornwall Insight said: ‘While the rise is eye‑catching, any immediate concern should be tempered. 

‘We are still early in the assessment period for the July cap, and what happens in the energy markets over the next three months will be the key factor, rather than this spike alone.’

The energy consultancy said that while Europe and the UK ‘do not rely heavily on Qatari LNG,’ reduced supply will increase competition in the market and the UK and Europe ‘may need to raise prices to compete for these cargoes.’

It predicts that gas prices will jump from 5.74 to 6.74p/kWh for households, while electricity prices could see a smaller increase from 24.67p/kWh to 25.94/kWh.

Standing charges would increase from 57.21p per day to 59p for electricity, and to 30p per day, from 29.09p for gas.

Last week, regulator Ofgem announced April’s price cap would fall by £117 to £1,641, after the government announced plans to shift some costs away from energy bills.

‘However, this latest forecast puts the role of wholesale markets firmly back in the spotlight and illustrates how exposed UK households remain to international market movements,’ said Lowrey.

‘Events like this reinforce the case for greater home-grown renewable generation. Reducing the UK’s reliance on volatile global gas markets is the most durable way to protect households from future price shocks.’

Gas prices have started to pull back today, with European gas futures dropping more than 9 per cent to €48.30/mWh, and UK prices a similar amount to 128p per therm.

Ofgem boss Jonathan Brierley told MPs that it was too early to predict where July’s price cap might go, though. 

‘Anyone who is drawing a line from the price today and saying that’s what’s going to happen to the price cap, I don’t think that’s robust because this is moving too fast.’

But, he added: ‘Although we remain at the early stages of this conflict, if the Strait of Hormuz remains closed for a prolonged period of time it is likely this will create significant upward pressure on prices that customers will pay for their gas and electricity.

‘For example, in electricity, gas still sets the price for the majority of the time.

‘Now I know already there is a great deal of speculation about the scale and extent of those price changes. But genuinely it is too early to tell.

‘In my experience, gas traders find it extremely difficult to calibrate the sorts of risks we are facing, and therefore market projections are not a reliable guide to the future.’

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By JANE DENTON, MONEY REPORTER

Updated: 07:10 EST, 3 March 2026

Grocery inflation edged up higher last month, ending four consecutive months of falls in the latest blow to millions of households. 

Data from market research firm Worldpanel by Numerator shows grocery inflation rose by 4.3 per cent in the four weeks to February 22 on a like-for-like basis. 

Prices rose fastest in markets such as fresh unprocessed meat, skincare and chocolate confectionery, and fell in chilled butter and spreads, household paper and sugar confectionery. 

It deals a fresh blow to millions of households struggling with higher food and energy bills and housing costs. 

The increase from January’s 4 per cent grocery inflation came as shoppers held off on Valentine’s Day spending until the last minute, with nearly 12 per cent of households picking up a premium meal deal on Friday night alone.

Top spot: Ocado was crowned as the fastest growing grocer last month, Worldpanel said

Consumers spent a collective £39million on high-end meal deals priced at £10 or more in the run-up to Valentine’s Day, which is seven times higher than the previous week.

Worldpanel data also showed that customers paid more for their pancakes leading up to Shrove Tuesday. 

Sales of pre-made mixes jumped 114 per cent week-on-week, but those making their own batter paid 42p or almost 6 per cent more than last year, as the cost of key ingredients reached £7.77, Worldpanel said. 

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: ‘Looking ahead to Easter, shoppers will notice that chocolate prices remain high, up 9.3 per cent year on year.’ 

Separate data published by the British Retail Consortium on Tuesday said food inflation increased by 3.5 per cent year-on-year in February, against growth of 3.9 per cent in January. 

This was, according to the BRC’s findings, in line with the three-month average of 3.5 per cent.  

Fresh food inflation increased 4.3 per cent year-on-year in February, against growth of 4.4 per cent in January. 

This was above the three-month average of 4.2 per cent, the BRC said.

Ambient Food inflation increased 2.3 per cent year-on-year in February, against growth of 3.1 per cent in January. This was below the three-month average of 2.6 per cent.

Supermarket rivals: Tesco remains Britain’s biggest supermarket, Worldpanel data shows

Ocado crowned as Britain’s fastest supermarket

Ocado was once again the fastest growing grocer over the 12 weeks to February 22, a position it has maintained since September 2025.

Last week, Ocado confirmed plans to axe 1,000 jobs as part of a £150million cost-cutting drive.

Around 5 per cent of Ocado’s global workforce is being cut, with two-thirds of redundancies to take place in the UK, mostly at its headquarters in Hatfield, Hertfordshire.

At 5.6 per cent, sales at Waitrose grew at the highest rate since March 2021, reaching a market share of 4.8 per cent. 

Lidl recorded double-digit sales growth for the twelfth consecutive period, up 10 per cent.

Tesco saw sales grow by 4.5 per cent to reach market share of 28.5 per cent, while Sainsbury’s increased its market share to 16.1 per cent as sales rose by 5.2 per cent over the 12 week period.

Asda once again saw its sales dip year-on-year, this time by 2.6 per cent, while Co-op’s sales were down 1.6 per cent on last February, according to the data.

Marks and Spencer, while not a grocer, is a major competitor to the supermarkets in the chilled ready meals category which featured so heavily in shoppers’ Valentine’s Day baskets. Grocery sales at M&S were 7 per cent higher over the 12-week period compared to last year. 

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There is currently no parliamentary budget officer scrutinizing federal finances in Ottawa as the interim fiscal watchdog’s term expired Monday without a successor in place.

The PBO is an independent agent of Parliament tasked with analyzing federal budgets, spending proposals and election campaign promises to raise the quality of public debate.

With no budget officer installed, the office itself cannot publish any reports or accept new work requests from parliamentarians.

The budget office will continue to work on existing requests while waiting for a new officer to be named.

Interim PBO Jason Jacques was appointed to a six-month term in September that ended at 5 p.m. ET Monday.

Ottawa opened applications for a new permanent PBO in November and last week a Privy Council Office spokesman said information about the appointment of a permanent budget officer would be “made available in due course.”

The appointment of a permanent budget officer to a seven-year term is decided by cabinet and must be approved by Parliament.

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Interim PBOs, like Jacques, can be appointed without parliamentary sign-off for six-month terms.

3:04
2025 budget leaves ‘little room’ for future risks, watchdog finds

The federal government’s “persistent delays” in appointing new fiscal watchdogs were highlighted as a shortcoming in an otherwise glowing review of Canada’s parliamentary budget office published last week by the Organization for Economic Co operation and Development.

Jacques argued at the House of Commons standing committee on government operations and estimates Thursday that it would benefit Ottawa to shift the watchdog’s mandate from the budget officer to the office itself to help with continuity between mandates.

Bloc Québécois MP Marie-Hélène Gaudreau told the same committee in French that the federal government’s failure to date to name a replacement PBO is “unacceptable” with Jacques’ term coming to a close.

Jacques’ tenure heading up the budget office started with a bang in September as he criticized the Liberal government’s fiscal track as “unsustainable.”

Later, when Liberals tabled their 2025 federal budget, Jacques said Ottawa’s debt path was broadly sustainable in the long term but argued the feds had used up some of their ability to absorb future fiscal shocks.

He also pushed for a new independent body to clarify definitions of capital spending under the Liberals’ new budget framework.

&copy 2026 The Canadian Press

The FTSE 100 fell this morning as markets tumbled and gas and oil prices surged after conflict erupted with Iran across the Middle East.

After hitting record highs last week, the UK’s leading stock market index had fallen 129 points, or 1.2 per cent, to 10,781, at 12.30pm.

Oil prices have surged on fears of disruption to energy markets, with Iran reportedly warning tankers on the strait of Hormuz that no ships would be allowed to pass. Brent Crude Oil had jumped 8.6 per cent to $79.37 at lunchtime.

Gas prices have also rocketed, with the EU natural gas measure soaring 40 per cent since Friday, after Qatar shut down liquified natural gas (LNG) production following Iran targeting it with drone strikes.

Neil Wilson, of Saxo Markets, said: ‘We are a long way off 2022 in terms of pricing but if LNG to Europe is effectively shut via Hormuz for a prolonged period we could see chaos. I am much more concerned about European natural gas prices than oil prices.’ 

Gold climbed 2.2 per cent to $5,393, as investors sought assets considered safe havens and feared a fresh wave of inflation off the back of higher oil prices. 

The Footsie’s decline was tempered by its energy, commodities and defence stocks. However, nervous investors will be watching markets closely today, amid fears that the conflict could send shares tumbling.

A wave of reprisal attacks on Middle Eastern nations by Iran continued yesterday after the US and Israel hit targets across Iran on Sunday, following the killing of Supreme Leader Ayatollah Ali Khamenei.

The FTSE 100 had been flying high before conflict with Iran erupted

The FTSE 100’s relatively muted fall comes as the index is bolstered by its substantial weighting to energy companies, miners and defence.  

These were buoyed by a higher oil price, greater demand for gold, and expectations of a continuing increase in defence spending.

Among the stocks that rose on the FTSE 100 this morning were BAE, up 6.2 per cent, Shell, up 3.6 per cent, and BP, up 2.9 per cent.

Airlines and banks were among the biggest fallers, with BA-owner IAG tumbling 6.6 per cent, Barclays down 5.6 per cent, HSBC down 4.3 per cent, and easyJet down 3.9 per cent. Intercontinental Hotels also fell 5.4 per cent.

Gas prices leapt after Qatar’s state-run energy firm halted liquefied natural gas production. In a statement, it said: ‘Due to military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products.’

European gas prices remain far below levels seen during the 2022 energy crisis but have risen beyond the level their level in early January, when they are typically high due to cold winter weather.

A prolonged spike could trigger a fresh bout of energy bill inflation, which will worry centrabl bankers and could stall interest rate cuts.

US gas prices are less exposed to global turmoil due to domestic production and rose around 5 per cent today.

The FTSE 100’s biggest risers at 9am on Monday 2 March

The FTSE 100’s biggest fallers at 9am on Monday 2 March

Richard Hunter, head of markets at Interactive Investor, said: ‘The sinister developments over the weekend have unsurprisingly had a debilitating effect on many asset classes, not least of which is uncertainty around the escalation and duration of the conflict.

‘At the eye of the storm was the potentially inflationary spike of the oil price at a time when central banks are still hoping that any further price rises could be contained.

‘Despite oil, defence and mining stocks providing a strong prop, the FTSE 100 was hit by a stronger wave of investor pessimism. 

‘Travel stocks understandably bore the brunt, with an initially vertiginous fall of up to 11 per cent for International Consolidated Airlines and a near 5 per cent drop for easyJet, all but cementing the impending relegation of the latter at this week’s reshuffle.’

The FTSE 100 had been flying high before the turmoil, hitting a series of record highs and knocking on the door of 11,000 points.

Susannah Streeter, chief investment strategist at broker Wealth Club, said: ‘Investors are scuttling towards safe havens, seeking shelter as conflict widens in the Middle East.

‘Precious metals prices have ratcheted up again, with gold and silver increasingly sought after in these turbulent times. 

‘Gold has reached a one-month high, after recording its seventh consecutive monthly gain in February – the best winning streak since 1973. Back then, a severe oil shock led to a flight to safe havens.

‘While oil prices have increased sharply, this is not yet mirroring the 1970s surge, when prices effectively quadrupled in just a few months after Gulf countries retaliated against US support for Israel in the Yom Kippur War.

‘However, with tensions escalating and uncertainty so high, it is far from clear how this current conflict will evolve, and prices could climb even higher. 

‘This time around, other worries are also colliding to push up precious metals prices, including high debt levels, concerns over the Federal Reserve’s independence, and questions about the sustainability of the artificial intelligence boom.’

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Elon Musk says that ‘it is time to go forth, be out there among the stars, expand the scope and scale of human consciousness’.

The Tesla tycoon’s latest deal may inspire investors to follow his call, although the recent failure of the UK space venture Orbex, based in the Orkneys, highlights the hazards of boldly going beyond this planet.

Earlier this month, Musk unveiled a $1.25trillion (£930billion) merger between his rocket company SpaceX and his loss-making start-up xAI, owner of the X social network.

The combined entity – to be called X.AI Holdings – is set to land on the stock market in July in what may be the largest flotation ever. The business may be valued at $1.5 trillion (£910billion).

X.AI aspires to colonise Mars and construct factories on the Moon.

But, more immediately, it hopes to build solar-powered data centres that will orbit in space and provide the computing power required to fuel the growth in artificial intelligence.

Reaching for the stars: Elon Musk says that ‘it is time to go forth and expand the scope and scale of human consciousness’

This latest expansion of the ‘Muskonomy’, as Musk’s empire is known, underlines the pivotal role that space is set to play in the AI arms race.

But it also underlines the importance of space to terrestrial defence, at a time when Nato countries are pledging to boost spending in this area by 5 per cent to $13.4 trillion (£9.9 trillion) by 2035.

Space firms of every type could seize 10 to 20 per cent of this uplift, thanks to surging expenditure on technologies like earth observation which involves the satellite surveillance of infrastructure and troop movements.

For example, the Azalea satellites, operated by UK defence titan BAE, provide ‘intelligence, surveillance and reconnaissance to enhance the nation’s ability to protect against modern threats’.

The information coming from satellites is now a key defence capability, according to Mark Boggett, chief executive of the Seraphim Space Fund investment trust. He said: ‘Ships and tanks can now be destroyed by drones that cost a few dollars to build. But better technology gives you an advantage over your aggressors.’

About 70 per centof the revenues of the companies in which Seraphim Space invests are derived from defence. These tech stars are switching over their satellites from monitoring projects for insurance and oil firms to the observation of hostile zones on behalf of the US, UK and other Nato states.

Defence is one reason why the S&P Kensho Final Frontiers index, which is made up of space technology companies, has risen by 86 per cent over the past 12 months.

The index’s members include armaments and weapons companies like the US giants Boeing, Lockheed Martin and Northrop Grumman, but also names like Planet Labs. This business, set up by three ex-Nasa scientists, operates a fleet of image-taking satellites. Its shares are 409 per cent higher than a year ago.

The creation of X.AI has been described as ‘financial engineering’ by sceptics. There are also no details yet as to how Musk plans to raise the vast sums of capital to pay for the assembly and launching of the satellites – he would like to have a constellation of one million satellites.

But it would be short-sighted not to see the enterprise, however far-fetched, as an alert to look beyond planet Earth for the next portfolio opportunities. Here’s how to plan your voyage into space.

Taking off?: A SpaceX rocket during launch

A stake in SpaceX 

The planned stock market debut of X.AI should be ‘the healthiest wealth creation event in history’, according to Shaun Maguire of the US venture capital firm Sequoia Capital. 

This is presumably because the wellbeing of the company’s workforce will be enhanced by the appreciation in their stock options.

The flotation could also be a massive boost for Musk, SpaceX’s largest shareholder with 43 per cent of the company, in his campaign to outpace the other tech billionaires in the AI arms war.

Boggett said: ‘The combination of the two businesses will enjoy a moat – a competitive advantage. Data centres are voracious users of energy which is costly. But X.AI’s data centres in space will have access to an unlimited source of free energy – from the sun.’ Musk may opt to deploy these data centres only for the use of his own ventures, including Tesla, or give access to his rivals for a fee.

The star funds

Musk’s extraterrestrial ambitions could also be good news for you if you have money in Scottish Mortgage. This £13.38billion investment trust, managed by Baillie Gifford, invested $200m in SpaceX in 2018. 

This is now worth $3.3billion. SpaceX is also held by other Baillie Gifford trusts: Baillie Gifford US Growth, Edinburgh Worldwide and Schiehallion.

Despite the promise of X.AI bounty, buying shares in these trusts carries a reasonably large degree of risk right now.

Saba, the hedge fund run by activist investor Boaz Weinstein, still owns 30 per cent of Edinburgh Worldwide, and is making a third attempt to gain control of the trust.

Schiehallion and Scottish Mortgage (where I am an investor) are both a bet on tech innovation of every kind.

Baillie Gifford US Growth backs Amazon, Meta, Nvidia and other Magnificent Seven stocks – Tesla, Alphabet, Microsoft and Apple – to which you may be already exposed. 

Another trust – RIT Capital Partners – also has a tiny slice of SpaceX. But this trust is also for the more adventurous since unquoted companies account for 30 per cent of the portfolio.

Shares in Seraphim Space have leapt by 155 per cent to 146p over the past year, but the trust does not have a stake in SpaceX, choosing to back start-ups and established companies in every aspect of space infrastructure.

The Finnish tactical satellite maker ICEYE is currently the top holding. The firm will be producing satellites for the German government in a joint venture with that country’s armaments leviathan Rheinmetall.

Among Seraphim’s other investments is HawkEYE, the US leader in the collection and analysis of radio frequency (RF) data, a service with several military applications.

AST SpaceMobile is another Seraphim investment. This US satellite designer is assembling a mobile network in space that should boost connectivity in poorly covered remote, rural or urban spots. 

This week Seraphim secured finance from its second venture capital fund from the British Business Bank and the National Security Strategic Investment Fund.

If you wish to explore every aspect of space, other options include two exchange traded funds (ETFs): Ark Capital Space and Defence Innovation and VanEck Space Innovators whose ticker symbol (by which it is known on the stock exchange) is Jedi – after the Star Wars warrior order.

In this fund’s portfolio you will find Planet Labs and Rocket Lab, a US spacecraft manufacturer which is seen as a mini-SpaceX.

Defensive strategy

Over the past year, BAE shares are up by 52 per cent, while Babcock has jumped by 118 per cent.

Rheinmetall, which this week won a contract to supply drones, or ‘flying warheads’, to the German army, has risen by 66 per cent.

Mounting geopolitical tensions since the start of this year are a reason to continue to hold these defence names.

But Musk’s new emphasis on space could divert even more defence expenditure towards this area which could provide extra support for their shares.

If you would like a broader spread of defence operators, there are three defence ETFs: Future of Defence, Global X Defence Tech and VanEck Global.

None promises to take you to infinity and beyond. But they can play a vital defensive role in your portfolio at this uneasy time.

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Premier Danielle Smith’s UCP government has introduced a new Alberta budget that promises more money for health and education but also an eye-popping deficit of $9.4 billion.

Finance Minister Nate Horner says coping with a rising population and lower-than-expected oil prices is putting the squeeze on Alberta’s bottom line.

Horner says the prudent course is to weather the economic storm and work to build the province.

The budget is the second consecutive multibillion-dollar deficit from Smith’s United Conservatives, and they’re forecasting more deficits through to 2029.

The taxpayer-supported debt is also going up and is expected to surpass $100 billion about a year from now.

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Alberta budget deficit expected despite record resource revenue

While income taxes aren’t increasing to make up the shortfall, there are several other ways Albertans will be paying more through fees and changes to the education property tax.

Consumers will also pay more on a number of items, from dangerous driving tickets to registry fees and car rentals.

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There will also fewer provincial supports for the province’s growing motion picture industry, as the government has reduced the Film and Television Tax Credit by $35 million to $60 million.

It comes after last year’s budget 2025 committed $235 million over the ensuing three years to the FTTC program designed to attract large-scale productions.

Here are some of the highlights

— The government expects to take in $74.6 billion while spending $83.9 billion (including $2 billion set aside as a contingency fund).

— It predicts a $9.4-billion deficit, the largest since the COVID-19 crisis when the budget came in nearly $17 billion in the red for 2020-2021.

— This is the second deficit under Premier Danielle Smith, with a $7.6 billion deficit projected for 2027 and a $6.9 billion deficit for the year after that.

— Taxpayer supported debt is set to increase by nearly $17 billion, reaching almost $109 billion in 2026 and almost $138 billion by 2029.

— Spending on education and health care is boosted at rates higher than the rate of population plus inflation (pegged in the budget at 3.7 per cent).

— Big ticket spending on education at $10.8 billion (7.2 per cent more than last year) and health care at $34.4 billion (5.8 per cent more than 2025-2026).

— A tax is to be introduced in 2027 on personal rental vehicles. It’s to be set at six per cent of the price of the rental before other taxes are calculated. Long-term leases and non-passenger rentals, like moving trucks, are to be excluded.

— A mandatory tourism levy applied to hotel rooms and other short-term accommodations rises in April to six per cent from four per cent.

— Fees and penalties are going up for some driving offences, corporate registry filing and licensing, and registration for businesses and charities

More to come…

— With a file from Karen Bartko, Global News

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