Australian households face prospect of interest rate hike and petrol prices rising above $2 a…

Core point

Australian households may face a Reserve Bank interest rate hike and petrol prices above $2 a litre due to the escalating Middle East crisis. Crude oil prices are expected to stay elevated for at least a year as the US-Iran war enters a new phase. The Houthis' blockade of Saudi Arabian oil and Ukrainian attacks on Russian energy infrastructure have added pressure on global oil supply. Financial markets see an even chance of a cash rate increase at the next RBA meeting on 11 August.