Up next
Author
Share this @internewscast.com
FacebookXRedditPinterest
Key Points
  • Iran’s retaliation could disrupt oil supplies, causing inflation in Australia.
  • Petrol may increase by 25c/L if oil prices reach $100–$150 a barrel, according to AMP’s Shane Oliver.
  • A rise in petrol prices is expected to affect airfare costs, though not immediately.
Iran’s response to US military actions might result in higher fuel costs and increased inflation in Australia, experts claim.
Motorists have already noticed a slight increase in fuel prices following the US attacking three Iranian nuclear sites. In reaction, Iran retaliated by targeting the US-run Al-Udeid base in Qatar, which did not result in any damage or casualties.
While Australian consumers have been advised not to worry about the Middle Eastern tension, escalating conflict may lead to further price surges, AMP chief economist Shane Oliver notes.
“The potential risk lies in US intervention provoking Iranian action that disrupts oil supply,” he stated to the Australian Associated Press.

“If Iran successfully blocks the Strait of Hormuz, it would lead to a significant spike in oil and petrol prices with a severe economic impact.”

Oliver said petrol would rise by 25 cents per litre in the likely event oil prices skyrocketed to more than $100 a barrel.
He said an increase in petrol costs could push up inflation, which would flow on to other parts of the economy.
“If the oil price went to $100 to $150 a barrel and it’s a much bigger boost to inflation, the Reserve Bank of Australia would be inclined to wait before cutting interest rates again,” he said.

“The price of airfares could go up, as well as plastic prices, which affects a lot of household goods.”

An infographic titled "Strait of Hormuz" created in Ankara, Turkiye on June 17, 2025.

The Strait of Hormuz serves as a key conduit for oil and liquefied natural gas (LNG) from the Middle East to global markets through the Arabian Sea and the Indian Ocean. Source: Anadolu / Murat Usubali/Anadolu via Getty Images

Australian Travel Industry Association chief executive Dean Long said airfares were not likely to increase immediately following the escalation in conflict in the Middle East.

However, he said travellers heading through the Middle East on the way to Europe would likely face longer journeys.
“The increase in congestion is causing delays,” he told AAP.
“With the narrowest flight path in recent memory – with Russia, Ukraine, Iran and Israel closed – the airspace is very narrow to get to Europe.

“Previously, there were several options to recover delays and keep on schedule, but now there is a very narrow margin to recuperate delays, offering less error tolerance for airlines.”

Long said there had not been any major disruptions for Australian travellers so far and urged passengers not to cancel their flights.
Prime Minister Anthony Albanese has backed America’s intervention in the conflict between Iran and Israel.
While Iran should not have access to nuclear weapons, Mr Albanese said a de-escalation was needed.
Share this @internewscast.com
FacebookXRedditPinterest
You May Also Like
Tropical Cyclone Narelle

Brace for Impact: Cyclone Narelle Strengthens on Collision Course with Western Australia

Severe Tropical Cyclone Narelle intensifies as it approaches WA coast as category…
Debit cards from the big four banks - Commonwealth Bank, NAB, Westpac, ANZ

Major Banks Increase Interest Rates, Yet Some Customers May Not Experience Immediate Effects

The Reserve Bank of Australia recently increased the official cash rate target…
Sprout bakery owners Rebecca Foley and Lutz Richter.

Struggling Aussie Entrepreneurs: The Harsh Truth Behind the $5 Price Tag Challenge

Small business owners in Australia are already being smashed by taxes and…
Businessman Adrian Portelli (centre) arrives at the Adelaide Magistrates Court, in Adelaide, Friday, September 5, 2025.

Lambo Guy Exonerated in Illegal Lottery Case; Company Faces Financial Penalties

Prominent entrepreneur Adrian Portelli has been exonerated from charges of operating illegal…

Debunked: The Truth Behind Iran’s False Claims on Australia’s Fuel Reserves

In brief A graphic originally published by SBS News was edited to…

From Deception to Self-Discovery: My High School Journey to Authenticity

In light of increasing restrictions on medical pathways for transgender youth globally…
Two fuel tanks on Sarah Thomson's Ruffy property were siphoned.

Devastation in the Outback: Bushfire-Ravaged Farmers Face Heartless Fuel Theft Crisis

In a disheartening turn of events, farmers in bushfire-affected regions of Victoria…
Radio host Kyle Sandilands leaves is home in, Vaucluse, 17 March 2026. Image 2

Kyle Sandilands Faces Legal Battle Over $100 Million Contract Dispute

Controversial radio host Kyle Sandilands is gearing up for his initial court…
Service stations introduce 50L caps as supply shock continues

Fuel Stations Impose 50L Limit Amid Ongoing Supply Challenges

Initially, rural and regional areas were the first to feel the pinch…

Australia Braces for Impact: Understanding the Implications of a Potential ‘Super’ El Niño Event

In brief Current forecasts suggest El Niño or strong El Niño conditions…

Nicólas Maduro Challenges U.S. Restrictions on Utilizing Venezuelan Funds for Legal Expenses

IN BRIEF Ousted Venezuelan president Nicolás Maduro wants his case for drug…
Fines for dodgy petrol pricing doubled as fuel crisis continues

Record Fines for Shady Fuel Pricing Amid Ongoing Fuel Crisis: What You Need to Know

Petrol companies caught ripping off Australian drivers will now face fines of…