08/04/2026
Middle East conflict: what it means for Australia
Rising global energy prices don’t hit everyone equally, and Australia sits in a unique position.
On one hand, we benefit. As a major exporter of gas and coal, higher prices boost national income, government revenue, and mining profits.
On the other hand, we feel the pain. Australia imports most of its fuel, so global shocks quickly mean:
• Higher petrol prices
• Increased cost of living
• Rising business and construction costs
The result? A split economy where resource exporters gain and households and builders face growing pressure.
Housing is where it really bites. Higher fuel and material costs make building more expensive, slowing new supply, while higher interest rates reduce borrowing power.
End result: slower house price growth, but ongoing housing shortages and rising rents.