Despite being one of the world’s top exporters of fossil fuels (coal and gas), Australia has little left of its own oil. Neither does New Zealand.
Both Australia and New Zealand sit at the end of a long supply chain for their transport fuels. The US-Israel war on Iran has led to this supply chain being squeezed. Iran’s move to shut down the crucial Strait of Hormuz has effectively frozen 20% of the world’s oil trade. Three ships were hit by projectiles in the strait yesterday.
When supply reduces, we expect prices to rise. That’s why petrol and diesel prices have shot up. Farmers and trucking companies are worried about possible fuel shortages, especially for diesel.
