ABC News AustraliaThe Business | With Iran attacking other nations’ energy infrastructure – it is now clear the regional war has the potential for far-reaching global consequences. While speaking at a business summit in Sydney, RBA governor Michele Bullock responded to concerns the conflict and its impacts on fuel prices could add to inflation, and lead to another interest rate rise. “It’s too early to say what the impact will be…a supply shock could, for example, add to inflation pressures and the potential implications for inflation expectations are something we are very alert to,” she says. Iran has attacked key Saudi Arabian oil infrastructure, marking a dramatic escalation in its strategy to halt the flow of oil to the West.
It’s threatened to attack ships crossing the Strait of Hormuz and saying the regime says passage is closed. One of the world’s biggest gas exporters Qatar has shut down LNG production after strikes against two facilities. A spike in gas prices four years ago caused electricity prices to soar and sent inflation into orbit, forcing the RBA into a punishing round of interest rate hikes. The treasurer is warning against price gouging at the petrol pump but surging gas prices could be a much bigger headache.
