Reserve Bank chief economist Sarah Hunter stated that global supply shocks are becoming more frequent, prompting the RBA to invest in new economic models and research to adapt to this "new reality" and manage policy trade-offs more often.
Japan relies on Malaysia for 15% of its LNG imports, making it a crucial supplier. This is important as Japan seeks to diversify from supply routes like the Strait of Hormuz.
Pacific foreign ministers have established a taskforce to address potential fuel supply shocks stemming from Middle East conflict. They are also preparing a statement calling for peace, as inflation already impacts the region.
Ryanair CFO Neil Sorahan expressed confidence in avoiding summer jet fuel shortages, despite Middle East conflict fears. However, he warned late bookings could lead to higher fares, with prices expected to be flat this summer. The airline reported record profits but suspended 2027 guidance.
Iran's armed forces are prepared to retaliate after President Trump rejected Tehran's ceasefire proposal, escalating regional tensions. The dispute over the Strait of Hormuz, a critical oil route, has already caused significant energy supply shocks and threatens global food security, with the UN warning of a potential humanitarian crisis.
The U.S.-Iran war and subsequent energy supply disruptions have prompted European nations to reconsider nuclear power as a vital, domestic energy source to ensure security and reduce reliance on volatile imports.
Supply shocks are driving up the price of oil. NPR's Ayesha Rascoe speaks to Kevin Book from ClearView Energy Partners about how the war in Iran is impacting the oil market.
Government request follows contingency planning to stop planes being grounded if Iran war supply shocks continueBusiness live – latest updatesBritish refineries have been asked to maximise jet fuel supply as part of government contingency planning, amid growing fears the Iran war will force planes to be grounded.Energy minister Michael Shanks said the government is closely monitoring UK jet fuel stocks and working with airlines, airports, fuel suppliers and other governments, as carriers face rocketing fuel costs as a result of the conflict. Continue reading...
TotalEnergies has maximised its output at the Gonfreville refinery to protect the French market from external supply shocks. The facility is operating at its limit to produce essential fuels as energy markets remain disrupted.
Widely dispersed wind farms and solar panels are harder to target than fossil fuel power stations, Michael Shanks saysRenewable energy will boost the UK’s national security and make the country more resilient against potential aggression or sabotage, the government’s energy minister has said.Michael Shanks said widely dispersed wind farms and solar panels were much harder to target than large-scale fossil fuel power stations. They are also not vulnerable to supply shocks, such as the current oil crisis caused by the US-Israel war on Iran and the soaring gas prices that followed Russia’s invasion of Ukraine in 2022. Continue reading...
RBI Governor Sanjay Malhotra said the central bank will stay agile in policymaking to ensure supply shocks triggered by the Iran war don't persist long enough to get embedded in the general price level. Addressing students at Princeton University on April 18, he said monetary policy's primary role is preventing this entrenchment through its influence on inflation expectations rather than through blunt demand compression. The war has severely dented supply of crude oil, natural gas and fertilisers, with West Asia contributing about a fifth of India's imports, half its oil imports and two-fifths of total fertiliser imports.
