Fears of a widening conflict in the Middle East could create more volatility for investors and rock the global economy. The US has warned Iran to exercise caution following concerns its supporting Hamas’ attacks against Israel. If Iranian oil exports come under pressure, prices will rise, increasing the risk of more interest rate hikes. Meanwhile, Australians already squeezed by high fuel prices could be in for more pain at the pump just before Christmas. It’s another blow to households struggling with 12 interest rate hikes and other cost-of-living pressures.
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As Israel’s war against Hamas escalates there’s a growing risk that the global economy could enter a recession Hamas says it received support from Iran for the attacks and that could mean us retaliation against tan it’s when and if that conflict becomes a broader conf conflict multi-nation multicountry conflict that has the
Potential to certainly derail markets Iranian oil exports have risen in recent years filling a void that was left after Russia’s invasion of Ukraine and under what some argue is a softer approach to sanctions under the Biden Administration Iran is also Accused by a watchdog group of making about $80
Billion in illicit oil sales since Biden took office the majority of Iran’s people don’t support the regime and want the US to take a stronger stance Iranians themselves have been risking their lives for Freedom after a global movement sparked by the death in custody of Massa ameni more than one year ago if
The war spreads further and Washington imposes tougher restrictions Iranian oil production of more than 3 million barrels a day could come under pressure the also a risk that Iran itself could disrupt the flow of oil through the straight of Hormuz this critical Waterway separates the Persian Gulf from
The Arabian Sea and about 20% of the world’s oil is shipped through here if Iran’s oil supply is cut a key question is whether Saudi Arabia may help fill the Gap it’s a key producer that forms part of the OPEC oil producing Nations and earlier this year cut production by
1 million barrels a day if the uh sanctions on Iran are toughened and uh there’s no other alternative Supply coming uh through countries such as Saudi Arabia all prices could easily sell through $100 that’s going to add to inflation pressure globally it’s going to add to pressure on central banks to
Keep raising interest rates um and add to add to the risk of a global recession if tensions continue to escalate we could be in for a long per period of economic uncertainty higher fuel prices are already squeezing Vanessa Town’s Hare business she used to offer free delivery
For online orders but now she charges a fee it’s extremely hard for us uh as a small business to basically absorb the cost now I have to charge a fee like $15 within the 15 kilometer right radient to the customer which have impacted greatly in terms of our business turnover um
Customer are thinking twice when the Middle East war broke out oil prices Rose about 4% commodity analysts say if it escalates prices could rise above $100 a barrel if we start seeing the US pointer finger at Iran we could see Iran’s oil exports start falling and that is where
We could see a sustainable oil price premium baked in on the back of this conflict and falling by about5 to 1 million barrels a day equivalent to about5 to 1% of Global Supply across the country petrol prices have averaged more than $2 a liter diesel prices are even higher at
$223 a liter it’s really killing prices at the moment have to like live very on budget very on budget experts say Australians could be in for more paying at the pump just before Christmas the oil prices that we’re talking about now relate to what we call the December contract price that oil
Will go into a global Refinery it’ll then be refined into petrol and Diesel and we probably won’t see that product in the country until late December early January it’s another blow to households already struggling with cost of living pressures independent MP dial is calling for Action from the federal government
If we’re expecting petrol prices to increase due to the conflict in the Middle East then this is the right time to really bring on the fuel excise tax cut for families working Australian families higher fuel costs will push up inflation and Australians might expect to pay even higher prices as fuel is
Used in many parts of economy some economists say that may concern The Reserve Bank which could come under pressure to consider another interest rate hike Vanessa tan also wants the federal government to help small businesses like hers by cutting the few excise if the the petrol price keep on increasing
Instead of um charging $15 we might have to consider charge about 20 or even up to $50 depending on what the price is in the future raising prices when many Australians are already stretched he
