Middle East conflict threatens household budgets through oil price surge.

Middle East conflict threatens household budgets through oil price surge. Global oil prices have spiked following strikes on Iran, disrupting shipments through the critical Strait of Hormuz, where roughly 20 percent of world oil production flows. AMP chief economist Shane Oliver warns petrol prices could rise 40 cents per litre, adding approximately $14 to average Australian weekly fuel bills. Brent crude climbed above $80 per barrel, with analysts forecasting potential increases beyond $100 per barrel if conflict extends. However, market reaction remains relatively modest, with analysts suggesting the disruption may be short-lived. Other OPEC members could increase supply to cushion impacts. Asian markets declined modestly, with Japan and Hong Kong down around one percent.