The International Monetary Fund (IMF) has released a new World Economic Outlook report highlighting the risks posed by ongoing conflict in the Middle East. In a hypothetical scenario where global oil prices climb to US$130 per barrel, the IMF suggests that Australian consumers could face an additional 30-cent increase per litre at the petrol pump.

Beyond the immediate impact on fuel costs, the report notes that such a price surge would likely increase inflationary pressure. Economists cited in the report suggest this could force the Reserve Bank of Australia to consider further interest rate hikes to combat rising costs. The IMF describes the current situation as a "clear and present danger" to the global economy, specifically pointing to the volatility in commodity and bond markets. While the IMF modeled the global impact of a prolonged crisis extending into next year, the report did not provide a specific, detailed breakdown of the Australian economic impact beyond these general projections.