RBA now twice as likely to hike interest rate as US-Iran war drives fuel prices higher
Rising tensions between the US and Iran have caused global oil prices to surge, increasing the likelihood of interest rate hikes by the Reserve Bank of Australia. Economists warn that energy market instability could further strain the Australian economy.
Why it matters
Geopolitical conflicts in the Middle East have direct, tangible consequences for inflation and monetary policy in distant economies like Australia.
Economists warn another prolonged closure of the strait of Hormuz as a result of renewed US-Iranian conflict could force the Reserve Bank of Australia to raise interest rates. Photograph: Reuters Economists warn another prolonged closure of the strait of Hormuz as a result of renewed US-Iranian conflict could force the Reserve Bank of Australia to raise interest rates. Photograph: Reuters Reserve Bank of Australia 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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