ABC News Daily How the Iran war fuels inflation
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Mar 4, 2026 Ian Verrender, ABC chief business correspondent who analyzes energy markets and inflation. He breaks down how the Iran war rattled markets. He covers petrol price spikes, Qatar gas disruptions, Australia’s LNG trade-offs, the Strait of Hormuz risks, and how conflict duration shapes inflation and rate moves.
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Recent Oil Spike Means Noticeable Petrol Hikes
- Oil jumped from below US$60 to around US$80 a barrel after hostilities began, directly pressuring petrol prices.
- Ian Verrender noted the AUD's recent strength offsets some impact, but motorists could still see 30–40 cents per litre rises.
Qatar Gas Cut Could Trigger Global Price Shock
- Qatar's gas shutdown threatens European supply and could ripple to Australia because Australia exports large LNG volumes.
- Verrender warned domestic gas shortages can push electricity and inflation higher, forcing RBA rate responses.
Export Focus Leaves Australian Consumers Vulnerable
- Australia exports large LNG volumes while importing oil, leaving domestic consumers exposed when exporters prioritise shipments.
- Verrender explained exporters like Santos have been buying domestic gas to meet export contracts, draining local supply.