Australian Treasurer Jim Chalmers warned Tuesday that escalating Middle East tensions could drive petrol prices higher across the country, as oil markets posted an 11% jump in a single day amid fears of broader regional conflict.
Chalmers said the government receives daily briefings on economic consequences stemming from Middle East developments, with oil price volatility emerging as the most immediate concern for Australian consumers.
"If you think about last Friday, the oil price jumped almost 11%, between 10% and 11% in a single day," Chalmers told Sky News AM Agenda. "It dropped down a little bit. It spiked again a little bit this morning. It's around the middle $70."
The treasurer said upward pressure on petrol prices typically takes "a couple of weeks before the international barrel price reaches the Bowser price in the suburbs and towns of Australia."
Chalmers attributed President Donald Trump's abrupt departure from the G7 summit in Canada, which resulted in a cancelled bilateral meeting with Prime Minister Anthony Albanese, to the deteriorating Middle East situation rather than any diplomatic slight.
"I think when you see the perilous moment in the Middle East and what it means for the world, it's not especially surprising," Chalmers said. "It's understandable that President Trump has left the meeting early."
The cancelled meeting between Trump and Albanese was intended to advance discussions on trade and the AUKUS security partnership between Australia, the United Kingdom and the United States.
Chalmers emphasized that Albanese has maintained regular contact with the U.S. president despite the missed face-to-face opportunity.
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