Potential oil price hike may impact petrol costs in Australia
- Mar 2
- 1 min read
Australian drivers are being advised to fill up early as global oil prices face fresh pressure from rising tensions in the Middle East.
Recent US and Israeli strikes on Iran have sparked fears of retaliation that could disrupt oil shipments through the Strait of Hormuz — one of the world’s most critical energy routes.
The narrow waterway handles about one-fifth of global daily oil supply. Iran controls its northern side and holds some of the world’s largest oil reserves. Any disruption could quickly lift fuel prices worldwide.
Energy analysts warn the worst-case scenario would involve attacks on Saudi Arabia’s oil infrastructure or a full closure of the strait. That could push oil prices up by at least US$5 a barrel, and potentially more.
Shipping data shows dozens of oil and gas tankers have already stopped or anchored near the strait, with several companies suspending movements due to security risks and soaring insurance costs. While no official international closure has been confirmed, warnings issued to vessels have heightened uncertainty.
According to the US Energy Information Administration, around 20 million barrels of oil pass through the strait each day. Most of it supplies Asian markets, including China, India and South Korea, making the region especially vulnerable to disruption.
For Australia, any sustained rise in crude prices is expected to flow through to the bowser in the coming weeks — prompting advice for motorists to prepare now.
Stay tuned with Aus News Lanka – the leading platform for news for Australians.
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