What happened
Brent crude oil pushed toward $US110 per barrel as escalation in the US-Iran conflict disrupted shipping through the Strait of Hormuz. Australian retail petrol prices have already rebounded to around $2.10 per litre, erasing half of their previous decline since March as global energy supply risks intensify.
Why it matters here
Rising fuel prices act as a direct tax on Australian consumers and elevate transport input costs across local supply chains. While ASX energy producers benefit from higher realization prices, sustained oil spikes raise inflation expectations, driving bond yields higher and discounting equity growth valuations.
What to watch
Shipping traffic updates through the Strait of Hormuz and diplomatic or strategic policy responses from international energy authorities.
Source
amp.com.au