Explore the latest developments concerning RBA now twice.
RBA now twice as likely to hike interest rate as US-Iran war drives fuel prices higher
Experts warn global energy market at a ‘critical juncture’ with escalating Middle East crisis expected to further drag on a slowing Australian economy
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The likelihood of a Reserve Bank interest rate hike has doubled, according to market forecasts, as the escalating Middle East crisis once again drives fuel prices higher amid dwindling global oil reserves.
The total breakdown in the fragile ceasefire between the US and Iran has sent the international Brent crude benchmark surging by 23% over the past two weeks and back within reach of $US90 a barrel.
The Iran war’s big oil mystery: No one seems to want it
Two dominant forces balance the global oil market: supply and demand. The Iran war has broken both â one perhaps beyond repair.
Supply remains a complete mess. A historic crude glut turned into the worst-ever supply shock before another flood of oil entered the market in June. Now, an intensifying war has again closed off significant access to Persian Gulf oil, reinjecting chaos into the market.
The world has adapted to the supply shock during five months of war, learning how to cope without using as much oil as it had before the conflict. Hundreds of millions of barrels of oil finally escaped the Strait of Hormuz last month, only to find few willing buyers. Some Middle Eastern crude had to be heavily discounted before it found any takers.
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Analysts warn Middle East escalation could hurt Australians at bowser | ABC News Top Stories
Middle East analysts warn Australia could be hit with rising fuel prices and potential shortages due to the latest escalation in the war there.
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The US is imposing a 50 per cent tariff on a wide range of Canadian products.
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