Economist: Iran war will increase Australia's fiscal revenue and put pressure on households

According to Golden Ten Data on March 10, a research report shows that the Iran war has driven up the export prices of liquefied natural gas and coal, which will bring additional revenue to the Australian treasury, but at the same time, households will be hit by soaring gasoline costs. Economist James McIntyre stated that the closure of QatarEnergy's liquefied natural gas export terminal could result in Australia's liquefied natural gas export revenue being 35% to 40% higher than government forecasts. He estimates that disruptions in gas and oil supplies are pushing the market towards coal, and in recent weeks, coal prices have risen by 20% to 25%, which could increase Australia's export revenue by about AUD 5 billion (USD 3.5 billions). McIntyre expects that rising gasoline and diesel prices will add 0.9 percentage points to Australia's overall CPI in March. He expects the Reserve Bank of Australia to ignore this reading and continue to focus on core inflation indicators. According to his estimates, the impact of the increase in Australian gasoline prices alone is equivalent to a 25 basis point rate hike.