A sustained spike in oil prices and trade disruptions in the Middle East is expected to deal another blow to an already wobbly global economy that could force the Reserve Bank of Australia to keep cutting interest rates even if inflation starts to climb again.
On Monday, oil prices shot up to their highest since January after the US launched strikes in Iran and hinted at more attacks to come, stoking fears of supply disruptions. Brent crude surged as much as 5.7 per cent to $US81.40 a barrel, extending its three-week advance.
Source: https://www.afr.com/markets/debt-markets/oil-shock-could-put-rba-s-in-a-bind-on-rate-cuts-20250623-p5m9h4