Alberta Premier Danielle Smith says the war in Iran underscores the need for a new pipeline connecting her province’s oil reserves to the West Coast.

The threat of shipping disruptions have seen global oil prices jump since American-Israeli attacks on Iran over the weekend.

Smith says any disruption in the Strait of Hormuz, a key oil choke point at the mouth of the Persian Gulf, only underscores the need for a new pipeline that could bring her province’s pivotal export to Pacific shipping lanes.

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Escalating Israel-Iran conflict puts Strait of Hormuz into focus

She says if the uncertainty continues, it only demonstrates that the world and Canada’s trading partners need to have a stable source of supply.

Depending on how much market volatility is to come with one month left in the province’s current fiscal year, Smith says her government’s expected $4.1-billion deficit could shrink.

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Last week, her United Conservatives projected a $9.4-billion deficit for the coming year based largely on sluggish oil prices.

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Leaders around the world ‘blindsided’ by US-Israel strikes against Iran

Calgary-based Pembina Pipeline Corp. says it has decided to proceed with two pipeline expansion projects in British Columbia and Alberta as it announced a dip in fourth-quarter earnings.

The energy infrastructure company says earnings for the final three months of 2025 were $489 million, or 78 cents per share, compared to $572 million, or 92 cents per share, a year earlier.

Revenue fell to $1.91 billion from $2.15 billion during the same 2024 quarter.

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Pembina says the two pipeline expansions it has sanctioned represent a total investment of $425 million and are set to come into service next year.

One $310-million project would see a new 95-kilometre pipeline that would ship 120,000 barrels per day of natural gas liquids between Birch and Taylor, B.C.

The firm has also decided to go ahead with an initial phase of a new pipeline connecting Taylor to a pump station in Gordondale, Alta., at a cost of $115 million.

“This milestone reflects strong collaboration with both Indigenous and local communities built on trust and open engagement,” CEO Scott Burrows said in a news release Thursday.

“It also reflects strong engagement with the Government of British Columbia and the BC Energy Regulator, whose guidance and regulatory oversight have helped establish a clear and responsible path forward for this project and for sustainable development in the region in the future.”