What happened
Brent crude oil prices climbed past US$90 per barrel following renewed military conflict between the US and Iran. The energy rally lifted local refinery operators Ampol and Viva Energy by over 2.3 per cent, while Wall Street equity benchmarks retreated as energy security concerns stoked global inflation fears.
Why it matters here
Sustained high crude oil prices flow directly into domestic fuel costs, raising input expenses for supply chains and eroding household disposable income. While Australian energy exporters benefit from higher revenues, broader equity markets face valuation pressure if elevated energy prices delay global interest rate cuts.
What to watch
Weekly US crude inventory reports and official commentary on Middle East shipping lane security.
Source
proactiveinvestors.com.au