Whether the present Israel-Hamas war morphs into World War III or not, one of the main early-term economic consequences of the conflict will be rising oil prices and global inflation. A warning of what is to come has been given to us by Reserve Bank of Australia (RBA) Governor Michelle Bullock. The terrible causal pathway is that rising oil prices leads to rising fuel costs and this has a cascading effect upon the entire economy, resulting in inflation. Another flow-on effect will be a slowdown in the global economy, outside of the military industrial complex, with impacts upon Australian trade.
This is all bad news at a time of cost-of-living crisis, but it will be worse if World War III erupts, which many are predicting. Best to start stocking up on food, meds, and especially toilet paper, as you never know. There is not much Australians can do to stop this, but we can strive to survive.
