Australia's Treasury Warns of Increasing Economic Risks from Ongoing Middle East Conflicts
Xinhua News Agency, Canberra, July 28 (Reporter Wang Jialin) - Australian Treasurer Jim Chalmers warned on the 28th that the economic risks arising from the ongoing conflict in the Middle East are increasing.
On the same day, Chalmers released a briefing from the Australian Treasury. The briefing pointed out that the conflict in the Middle East has triggered shocks to oil supply, and currently, the "buffer space" for the global response to such shocks is decreasing. The initial oil price shock caused by the outbreak of the conflict in the Middle East was alleviated due to market adjustments, including changes in oil export routes and the release of oil reserves by various countries. However, global oil reserves have now been depleted, and the market's ability to respond to further supply shocks has diminished.
"The recent escalation of tensions in the Middle East poses a significant threat to global inflation. The costs and impacts of this conflict and its ongoing nature still carry enormous uncertainty," Chalmers said.
The Australian federal government projected in May that if the conflict in the Middle East worsens further, international oil prices could reach $200 per barrel in the third quarter of this year, significantly driving up the country's inflation rate.
Australia's Treasury Minister Jim Chalmers warned on July 28, 2023, of rising economic risks linked to ongoing conflicts in the Middle East, which are disrupting oil supplies and threatening global inflation. He noted that the capacity to buffer against these shocks is diminishing as global oil reserves are depleted.
- Australia's Treasury Minister Jim Chalmers warned of increasing economic risks from Middle East conflicts.
- The ongoing conflicts are impacting global oil supply and inflation rates.
- Australia's government predicts oil prices could reach $200 per barrel if conflicts worsen.