Global oil prices have surged by as much as 7.9% in a single day, sparking concerns about inflation and economic growth. The sharp increase is largely attributed to fading hopes of a peace deal that could end the US-Israel war on Iran and reopen the critical Strait of Hormuz. As a result, traders are bracing for a prolonged conflict, which could have far-reaching consequences for the global economy. With markets on high alert, investors are closely watching developments in the Middle East, where the path to a sustained ceasefire appears increasingly uncertain.
Meanwhile ACT independent David Pocock is calling for a 25% tax on gas exports to fund welfare and housing. Follow today’s news liveGet our breaking news email, free app or daily news podcastChalmers warns of ‘big risks’ to inflation and growth as global oil price jumps againThe global oil price jumped by as much as 7.9% this morning as traders responded to fading hopes of a new peace deal that could end the US-Israel war on Iran and reopen the strait of Hormuz.The big risks here are to inflation and to growth, and the key factors which will determine whether we get a bit more inflation or a lot more inflation, a bit less growth or a lot less growth, will be how long the war continues, how long it takes to reopen the Strait in an enduring way, and how long it takes for the global economy to get back to something which looks a bit a little bit more like normal.For markets, the weekend’s developments highlight that the path to the end of hostilities and a sustained ceasefire in the Middle East may not be straightforward.Over the next few weeks, and subject to plant inspection, the company expects to be in a position to … lift the production of diesel, jet fuel, and petrol to over 90% of capacity. Continue reading...
