Economists indicate that escalating tensions between the U.S. and Iran could lead to a significant rise in oil prices, potentially exceeding $100 per barrel. This situation may prompt the Reserve Bank of Australia (RBA) to implement a fourth interest rate increase in 2023 if the conflict remains unresolved within a week.
Recent missile strikes and a new maritime blockade have already pushed Brent crude oil prices to $85 a barrel, with further increases expected. The RBA's decision may be influenced by rising inflation concerns as consumer confidence dips amid these developments.