Oil Prices Surge, Sparking Global Recession Fears

0:00Sydney's story is making news on March 9th. All prices have spiked to $116 a barrel, delivering the biggest economic shock since the pandemic depths. This surge stems from the escalating U.S. Israeli conflict with Iran, where attacks have hit refineries and storage sites. Australia's share market shed $80 billion in a single day, fueling recession fears for the United States. This worldwide panic, as the ASX 200, plunged more than $110 billion at its worst. Oil climb nearly 30 percent. Levels not seen since Russia's early Ukraine invasion. Since the war began, Australian stocks have lost $200 billion overall. G7 Finance Ministers are convening an emergency meeting Tuesday morning Australian time to eye-releasing oil from strategic reserves. Resurer Jim Chalmers notes the Council of Financial Regulators meets daily, watching volatility hit equities, commodities, debt and currencies.

1:01Production cuts are spreading. With the United Arab Emirates and Kuwait scaling back after Saudi Arabia, closes largest refinery and Qatar shut. Top-liquified natural gas plant. Bahrain's refinery is now smoking from attacks. The straight-of-hormouse, carrying one-fifth of global oil, faces shipping shutdowns with no storage room left. Economists predict Australia's inflation could hit 5 percent mid-year from this supply shock, pressuring the reserve bank on jobs and prices. If prices stay high, growth slows, complicating rate decisions. Asia and Europe brace for liquefied natural gas shortages, while US recession odds climb to 40 percent by year's end. This episode is brought to you in partnership with our sponsor. No earbuds, no headbands, no awkward sleeping positions, just a pillow that plays your