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West Australian
10 hours ago
- Business
- West Australian
Aussie petrol prices: Trump's move in Israel-Iran fight sparks warnings of bowser pain
Australians could be set for renewed pain at the bowser after US President Donald Trump stepped in to the raging conflict between Israel and Iran, with a shock weekend aerial strike. Mr Trump claimed to have taken out Iran's ability to enrich uranium through a bombing campaign on three key underground facilities. The Middle Eastern nation has reportedly warned 'all options' are on the table for a response. That will leave the west's energy security hanging in the balance, as Iran borders the crucial Strait of Hormuz waterway — a 33 kilometre-wide passage which transits about 20 per cent of global oil supply. Oil prices rallied on Monday morning as the threat of escalation loomed. Brent crude lifted more than 5 per cent to surge past $US80 per barrel. Share markets rose only modestly, a signal that investors hope for a quick return to peace. The benchmark ASX200 declined 0.3 per cent to 8,474.5 points at 12:30pm AWST, while Japan's Nikkei225 and futures for the US S&P500 slid a similar amount. Iran's next move will determine whether the cost of oil gets pushed even higher, according to AMP chief economist Shane Oliver. A disruption to shipping in the Strait or an Iranian attack on the oil infrastructure of other major Middle Eastern producers would be among the worst risks, Dr Oliver said. 'As 20 per cent of global oil supplies and 25 per cent of LNG trade flows through the Strait, any disruption could push oil prices above $US100 a barrel, possibly to around $US150/bbl,' he said. 'This would likely only be brief, as the US military would likely quickly move to stop Iran.' Oil reaching $US100/bbl would add 25 cents per litre to the price of petrol for Aussies, Mr Oliver said. That's on top of a 15¢/L increase already in the pipeline following the turmoil of recent weeks. It will mean cost of living pain returns to the agenda for Australian households, just as inflation looked to be coming under control following a four-year fight. But the overall impact of rising petrol prices on inflation will be moderated because consumers will need to switch spending from other categories to petrol. Demand for discretionary goods will fall and there will be less room for price hikes in other sectors of the economy, including services. Inflation remained under control during oil price breakouts across more than a decade from 2002 to 2014, partly for this reason. Prices for key Aussie energy export LNG will likely also head higher and ANZ researchers expected a 'meaningful' impact on gas. 'Over 20 per cent of the world's LNG trade would be at risk, namely exports from Qatar,' ANZ researcher Aaron Luk said. He said shippers would become 'even more cautious' about entering the waterway to pick up cargoes from Qatar, which is the world's third biggest producer. RBC Capital Markets head of strategy Helima Croft said Iran would struggle to close the Strait but may attack individual tankers. She said it was too early to know how the country would respond. 'Above all, we would caution against the knee-jerk 'the worst is behind us' hot take at this stage,' Ms Croft said. 'President Trump may indeed have successfully executed an 'escalate to de-escalate' move, but a wider expansion cannot still be ruled out at this juncture.'
Perth Now
13 hours ago
- Business
- Perth Now
One thing Aussie motorists should do
Australians are being warned that now is the low point in the petrol cycle and they should fuel up before prices rise in the coming days. With the price of Brent crude oil hitting a three-month high over the weekend as the Israel-Iran conflict escalates, surpassing $US80 a barrel, motorists are being urged to fill up. 'We will start to see the prices increase, but they are nowhere near as high as other economies have predicted,' NRMA spokesman Peter Khoury said. Aussie motorists are being told that now is a good time to fuel up. NewsWire / John Gass Credit: News Corp Australia Mr Khoury said while the price of petrol was going up, it was not as much as some motorists feared, with on average drivers likely to pay 8 cents more a litre when fuelling up their car. 'Our regional benchmark – Malaysian Tapis – closed at $77 a barrel and we do expect it to go higher when the markets open tonight,' Mr Khoury said. 'But to put it in perspective, when we saw those really horrible record high prices back when Russia invaded Ukraine, Tapis was trading at $133 a barrel.' Australia motorists' fuel costs are based on Malaysian Tapis crude oil prices. While Tapis crude oil prices are influenced by the same factors as US brent crude oil prices, they do not necessarily trade at the same price. The price of Brent crude oil spiked to $US80 a barrel over the weekend after the US attacked and 'completely obliterated' three nuclear sites in Iran. Traders were worried about two major potential escalations in the conflict, with either the closure of the Strait of Hormuz or an all-out regional war negatively impacting the price of oil. Cutting off the Strait of Hormuz could increase fuel prices. NewsWire / Luis Enrique Ascui Credit: News Corp Australia Cutting off the Strait of Hormuz could send the price of oil above $US100 a barrel, as the 32km mile stretch is the primary route of exports from Saudi Arabia, Iraq, the UAE, and Kuwait. But the passage that feeds the world with about 30 per cent of its oil supply is still open, at least for now, pending a final decision by Iran's Supreme Council after Iran's parliament voted to close it. Mr Khoury said it was important that Australians educated themselves before they filled up, with motorists in Sydney facing the bottom of the cycle, while Perth prices are set to fall on Tuesday. 'The reason I say that is because there is always a spread of prices,' he said. 'People are really surprised. We've had people say I thought the prices would be sky high and they are not.'
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
Australia an energy target as Iran-Israeli war triggers global turmoil
It does not appear to be a coincidence that hours after Israel started raining bombs down on Iran, one of the embattled country's neighbours, Abu Dhabi, pounced with an audacious offer that Australian energy giant Santos could not refuse. After making two offers over a week in March, the suitors are now putting $36 billion cash on the table, including debt, for one of our gas sector giants. If successful, it would be the largest ever cash offer in Australia's corporate history. Abu Dhabi's state-owned oil company, the Abu Dhabi National Oil Company, the world's 12th largest oil company by production, is the major player behind the bid via its $US80 billion ($123 billion) overseas investment arm XRG. This business was launched last year with a mission to meet rising global demand for lower-carbon energy and to become one of the five biggest integrated global gas and LNG businesses. So why does a state, a part of the UAE, which is awash in oil, make such a huge bet on becoming a global LNG business? Loading There are two core reasons: geography and the green energy transition. The Israel-Iran conflict, and the threat of escalation if US President Donald Trump drags the US into it, will send global oil prices soaring for one key reason: any existential threat to Iran's leadership could lead to an effective blockade of the Strait of Hormuz. It is a crucial choke point in the global energy supply chain, and not just for oil. Middle East LNG exports are even more reliant on the strait than is oil, and there are fewer alternatives to shipping LNG through the strait.
AU Financial Review
13-06-2025
- Business
- AU Financial Review
This is the only outcome markets should fear in Iran-Israel conflict
Amid all the turmoil on markets in recent months, the fall in the price of oil – down from $US80 a barrel in January to a low of $US55 a barrel in early May – has been a little ray of sunshine. It has acted as a counter to any inflationary pressure from tariffs, and provided a tailwind for consumers and businesses straining under an interest rate environment that remains very different to the one they've known for the past decade. So the sharp spike in oil following Israel's air strikes against Iran – crude leapt 12 per cent to around $US77 a barrel – is a headache global markets didn't need.
Yahoo
02-06-2025
- Business
- Yahoo
MDOT begins 13-mile upgrade to I-20
RANKIN COUNTY, Miss. (WJTV) – Officials with the Mississippi Department of Transportation (MDOT) said a project calling for the removal and replacement of 13 miles of Interstate 20 from the East Brandon Interchange to the Scott County line is now underway. The project provides fog sealing for six miles of I-20 from the Pearson Road interchange to the Crossgates Boulevard interchange. US 80 bridge rehab in Hinds County set for fall completion Officials said the project includes milling and overlaying the existing OGFC pavement, failed area repairs in underlying concrete pavement, joint and crack sealing, tree clearing, cleaning of drainage structures, and upgrades to deficient guardrail. The estimated completion date is fall 2026. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
