17 Oct The threat of higher oil and petrol prices flowing from the war in Israel
Key Points:
- The war in Israel has added to the upside risks to oil prices and downside risks to shares in the near term.
- If Iran stays out of the conflict & a major supply disruption is avoided the impact on shares should ultimately be minimal.
- If alternatively, oil prices do have a renewed surge it’s more likely to be deflationary as it will act as a “tax on spending”. So central banks, including the RBA, should look through it.
- The rise in petrol prices has already added $12 a week to the average household fuel bill in Australia since May.