Iran Conflict Impacts Aussie Economy

0:00This is Corey, keeping Sydney in the know. You're listening to Sydney News today. The war against Iran is rippling through the Australian economy, hitting everything from petrol pumps to wheat fields and travel plans. Oil prices have climbed 6% since the strikes began, reaching around 72 US dollars a barrel for both West Texas crude and Brent. That's a concern for inflation, but so far it's not the wild swing we saw during the Ukraine conflict when prices soared past 110 US dollars. Meanwhile, other pressures are building on the supply side. Fertilizer costs are rising, which could make planting the upcoming wheat crop more expensive and push up food prices like bread by year's end. Canola oil, used in everything from cooking to biofuels, has jumped more than 40% since mid-December, now near 700 Canadian. Dollars a ton, about the same in Australian dollars. Australians are filling the uncertainty in markets and daily life.

1:00The Aussie dollar dipped almost a full cent against the US dollar at first, but bounced back to 71 US cents, helped by higher LNG export hopes. Since guitars and the mix, travel stocks like Qantas and Flight Center dropped 8-6% as tourists worry about hubs like Dubai, while energy firms such as Woodside, and goal-producer Numan, Gain Ground. Reservebank Governor Michelle Bullock captured the mood this week, saying no one knows exactly how this plays out. A supply shock might fuel inflation, but prolonged energy issues could slow global growth in East prices. Gold has hit new highs, adding a boost down under. Financial markets have dialed back bets on a May interest rate hike, echoing last year's tear of chaos when the bank debated cuts before hiking. Instead, with the conflict possibly lasting 4-5 weeks or longer, economists are watching closely for the next twists. This DNN story is thanks to our sponsor details in the description. Podcasts hit different when the sound comes from your pillow.

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