<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national" rel="" target="_blank" title="Australians "><span>Australians</span></a><span> could be spending hundreds more a month due to the war in Iran, as Treasurer Jim Chalmers warned already-high inflation may climb towards five per cent. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers is factoring in increasing oil prices into the May federal budget and said current estimates have the current 3.8 per cent inflation rate surging even further past the two to three per cent target.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We've run a couple of scenarios which make it clear on some realistic assumptions about global oil prices and how that would potentially flow through to inflation and for how long," he told Sky News.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/world/us-israel-attack-iran-strait-of-hormuz-donald-trump/14ac7b1f-e957-4cec-b4c2-4855aadf111a" rel="" target="_blank" title=""><strong><span>Trump issues cry for help to other nations to keep oil flowing</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If we were putting pencils down on those forecasts today, we'd have inflation peaking somewhere between the mid to high fours."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers, however, brushed off expectations of a recession.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal and state governments have called emergency roundtables to discuss how the increased price of fuel could cause flow-on effects from retailers and distributors to consumers.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/aussies-pockets-to-suffer-as-treasuer-warns-inflation-to-near-5-per-cent/d9d0398e-1c1a-4787-960f-793b158e9780" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Shipping companies are rightfully nervous at the moment, and as long as they're nervous, the markets are nervous, people are buying fuel and at an increased rate," Nine political editor Charles Croucher told </span><em><span>Today</span></em><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It all serves to push up prices even further beyond all that."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The global conflict will form part of the discussion when the Reserve Bank meets next week to set the interest rates.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>All four of the big banks have tipped that there will be another rate increase. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/artificial-intelligence-tech-sector-lay-offs/dde93ab8-0c9d-409e-ae1f-3d39c0e1ec40" rel="" target="_blank" title=""><strong><span>Experts say worse to come after 23,000 jobs gone in mere months</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Croucher said this could leave the average person paying an estimated $220 more a month on rising home loans, fuel and groceries. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The war in Iran has entered its third week, cutting off the Strait of Hormuz that typically allows one-fifth of the world's oil supply to pass through to markets.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>US President Donald Trump has declared he has "beaten and decimated" Iran in the same breath </span><a href="https://www.9news.com.au/world/us-israel-attack-iran-strait-of-hormuz-donald-trump/14ac7b1f-e957-4cec-b4c2-4855aadf111a" rel="" target="_blank" title="he called for other countries to help secure the Strait of Hormuz"><span>he called for other countries to help secure the Strait of Hormuz</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He said the conflict should be over soon, but warned that it could continue longer if necessary.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The </span><a href="https://www.9news.com.au/world/petrol-prices-international-energy-agency-agrees-to-record-release-of-emergency-oil-reserves/80752f03-7fe5-4db8-82a6-933452ae3da0" target="_blank" title="International Energy Agency has agreed to the largest release of 400 million barrels of oil"><span>International Energy Agency has agreed to the largest release of 400 million barrels of oil</span></a><span> from its emergency reserves in history due to the supply disruptions on the Strait of Hormuz.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia, which imports 90 per cent of its oil, has also released 20 per cent of its petrol and diesel reserves to help areas experiencing low supply.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Energy Minister Chris Bowen this week confirmed the country has 1.6 billion litres of petrol, 2.7 billion litres of diesel and 800 million litres of jet fuel available - translating to 37 days' worth of petrol, 30 days of diesel and 29 days of jet fuel.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>