An escalation of hostilities between Russia and Ukraine could significantly hit the global economic recovery faced with higher energy costs, Treasurer Josh Frydenberg has warned.
Global oil prices are already heading towards $US100 a barrel on the risk of all-out war in eastern Europe, which has sent Australian petrol prices soaring to record highs in recent weeks.
"The knock-on effects for the global economy could be quite significant," Mr Frydenberg told reporters in Adelaide on Tuesday, noting the rise in energy costs more broadly.
