<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The </span><a href="https://www.9news.com.au/reserve-bank-australia" rel="" target="" title="Reserve Bank"><span>Reserve Bank</span></a><span> has cautioned it remains too early to tell what the economic impact of the </span><a href="https://www.9news.com.au/world/us-israel-attack-iran-live-updates-donald-trump-latest-world-news-headlines/95e0f1d7-cdf4-42ad-866d-569779885e71" rel="" target="" title="war in Iran"><span>war in Iran</span></a><span> will be, even as surging petrol prices deliver another hit to inflation-weary households.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Speaking at the </span><em><span>Australian Financial Review's</span></em><span> Business Summit in Sydney this morning, </span><a href="https://www.9news.com.au/michele-bullock" rel="" target="" title="RBA Governor Michele Bullock"><span>RBA Governor Michele Bullock</span></a><span> was characteristically guarded when addressing the outbreak of conflict in the Middle East over the weekend.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>She said while a disruption of oil and gas supplies could send </span><a href="https://www.9news.com.au/australia" rel="" target="" title="Australia's"><span>Australia's</span></a><span> already-high inflation further in the wrong direction, a prolonged conflict could have the opposite effect, albeit while dragging the rest of the economy down with it.</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>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-attack-iran-live-updates-donald-trump-latest-world-news-headlines/95e0f1d7-cdf4-42ad-866d-569779885e71" rel="" target="" title=""><strong><span>Iran says it will attack ships on key oil route</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's too early to say what the economic impact will be," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Events are moving rapidly and there are different ways this can play out. We will take some time to make sense of what it could mean for inflation here…</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It is not obvious how this might play out."</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/us-israel-attack-iran-economic-inflation-impact-australia/f2fad1f9-e0d3-40b1-9693-d01673efca43" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The most obvious impact for Australians so far has been at the petrol pump.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In NSW, for example, the average price for a litre of unleaded 91 has jumped from 178.7 cents on Friday to 185.5 cents today. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>One servo, according to state government data, is already slugging motorists 256.9 cents a litre.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/donald-trump-neck-rash-is-because-of-preventative-skin-treatment-his-doctor-says/4be3f74b-88cb-4cd4-b568-35843666df57"><strong><span>Fierce red rash spotted on Trump's neck</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This is despite the NRMA saying yesterday that it should take 7-10 days for surging oil prices to flow through to the bowser.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In Sydney, Melbourne and Brisbane, we are now at the top of the price cycle, and if anything prices should start to come down," spokesperson Peter Khoury said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While Iran is a significant oil producer, the far greater issue is the effective closure of the Strait of Hormuz, corking a crucial bottleneck where one-fifth of the world's supply passes through.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Iran's Revolutionary Guards have now threatened to strike any ships that pass through the critical strategic passage between Iran and Oman, which at its narrowest is just 39km wide.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-attacks-iran-donald-trump-iran-latest-previous-comments-on-iran-war-barack-obama-jd-vance-kamala-harris/86dc4c3e-43fd-4ba4-ad86-ec1da170f16b"><strong><span>Trump's past comments on Iran come back to haunt him</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Oil prices rose to $US77.60 per barrel yesterday, but analysts have predicted it could hit as high as $US100 – shy of the $US125 reached following Russia's invasion of Ukraine, but still well above the roughly $US60 it was selling for at the start of the year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If that plays out – and with US President Donald Trump talking about a weeks-long operation and refusing to rule out putting troops on the ground, there clearly is a chance of a long, drawn out-conflict – it will be a significant hit to Australian households.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Roughly speaking each $US1 a barrel rise in oil prices adds around a cent a litre to petrol prices," AMP chief economist Shane Elliott said. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"So, a $US40 a barrel rise in world oil prices taking them above $US100 a barrel would add around 40 cents a litre with a 7-10 day lag if sustained.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>WATCH:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-iran-strikes-dubai-hotel-blast-tourists-flee-iftar-ramadan-uae/b496b622-afa4-45e0-8e0d-87ba9088cf2d"><strong><span>Diners flee Dubai restaurant after mistaking Ramadan cannon for bomb blast</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"A 40 cents a litre rise in petrol prices would add about 0.8 per cent to CPI inflation, but it would also impart a dampening impact on growth. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This is because it would add around $14 a week to the household petrol bill leading to a cut-back in spending elsewhere in the economy. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In other words, it will act as a tax on households."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While he argued the RBA should look through that inflation spike, Bullock admitted today her bank might not be able to ignore a temporary shock to the system, with inflation already far too high for anyone's liking.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>WEATHER:</span></strong><span> </span><a href="https://www.9news.com.au/national/tropical-cyclone-queensland-moderate-chance-of-system-forming-in-coral-sea-weather-news/ba7fb3c7-3d60-4a6c-a680-d91f2d826274"><strong><span>Cyclone threat puts northern Australia on high alert</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"That's a very relevant point," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"With a supply shock occurring in a situation where we already have high inflation, I think there is a risk that inflation expectations may start to move.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"That will be something, I think, that will be front of mind for the (monetary policy) board."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That, in turn, could raise the chance of an interest rate hike, which many economists already think is highly likely in May.</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><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></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 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