Canada’s Energy and Natural Resources Minister Tim Hodgson says countries around the world are reaching out to Ottawa following escalating military strikes in Iran, as uncertainty in global oil and gas markets intensifies. Speaking to CBC News, Hodgson said international partners are increasingly asking how quickly Canada can ramp up both conventional and clean energy exports to stabilize supply amid rising geopolitical risks.
According to Hodgson, the conflict in the Middle East has heightened global anxiety, pushing energy-importing nations to seek reliable alternatives. However, he cautioned that production increases in liquefied natural gas and oil cannot happen overnight. Expanding output requires infrastructure, regulatory approvals, and long-term investment planning, meaning any significant supply boost would take time to materialize.
The minister made his remarks during a major mining conference in Toronto, where he emphasized that recent supply disruptions underscore the strategic importance of Canada’s natural resources. With concerns mounting around the Strait of Hormuz and broader regional instability, global energy markets have experienced renewed volatility. Hodgson suggested that Canada’s stability and resource base position it as a dependable partner in uncertain times.
Beyond oil and gas, the federal government is also accelerating development of critical minerals, which are essential for electric vehicles, advanced computing, defence systems, and telecommunications. During his keynote address at the Prospectors & Developers Association of Canada conference, Hodgson announced $3.6 billion in new investments for mining and processing projects. This includes up to $165 million allocated to accelerate planning and expand processing capacity across 22 domestic initiatives.
The government is also moving ahead with a $1.5 billion First and Last Mile Fund designed to help move minerals from extraction sites to processing facilities. In addition, a $2 billion Critical Minerals Sovereign Fund is expected to launch this spring. Ottawa describes it as a first-of-its-kind vehicle that will allow equity investments, loan guarantees, and offtake agreements to reduce financial risk for mining projects. Of particular note, Canada has designated key minerals as a national security priority under the Defence Production Act, enabling federal support mechanisms such as guaranteed buyers and minimum price protections. The government has also committed to stockpiling graphite and scandium.
Hodgson framed these initiatives as part of a broader strategy to strengthen Canada’s economic security, Arctic sovereignty, and leverage in global trade negotiations. While he did not directly reference Washington, he acknowledged that shifting trade dynamics and concentrated foreign supply chains present vulnerabilities for Canada and its allies. He stressed that Canada aims to offer a stable and non-coercive alternative in global resource markets.
The announcement comes as political leaders debate how best to secure long-term supply resilience. Conservative Leader Pierre Poilievre has called for the creation of a strategic energy and minerals reserve to bolster Canada’s negotiating power in times of crisis. As global tensions continue to reshape energy flows, Canada’s resource strategy is increasingly central to both domestic policy and international diplomacy.
