Will Israel’s Retaliatory Strike Impact Australian Fuel Prices?

Israel may be plotting a significant military strike on Iran’s vital oil export hub, Kharg Island, in response to a recent missile barrage launched into Israeli territory. The Israeli Defence Forces (IDF) have labelled the attacks, involving nearly 200 missiles, as a “severe and dangerous escalation” and issued a stern warning that “there will be consequences.”

As tensions between Israel and Iran continue to spiral, Israel’s potential target, Kharg Island, stands as a crucial asset for Iran. Approximately 90% of the country’s oil exports pass through this strategic location in the Persian Gulf, making it a pivotal part of Iran’s economy. If Israel strikes and significantly damages the infrastructure on Kharg Island, the disruption in Iran’s oil exports could reverberate across global oil markets.

Given Australia’s reliance on global oil supplies, a military strike of this magnitude could affect Australian fuel prices. A substantial reduction in Iran’s oil exports could lead to tighter global supply, raising crude oil prices worldwide. This could, in turn, drive up fuel prices in Australia, as the country imports the majority of its refined petroleum products.