Why this fuel crisis could jolt politics just like COVID did

March 19, 2026 — 5:15pm

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Australians have felt this pain before – but it’s been a while.

In 1979, Ayatollah Khomeini ascended to power in Iran’s Islamic Revolution. As AMP economist Shane Oliver explains, the flare-up cut out about 5 per cent of global oil supply.

News clips from Sydney showed drivers queuing up at service stations with only enough petrol to serve cars with number plates starting with odd numbers. Even numbers were served the next day. On weekends, all stations were closed.

The revolution marked the last time Australia rationed fuel. Iran’s response to US-Israeli strikes and the assassination of Ayatollah Ali Khamenei might spawn a more severe crisis.

In 2026, about 20 per cent of the world’s oil travels through the Strait of Hormuz, which Iran has shut down to increase the costs for US President Donald Trump.

“At a high level, it’s four times as big,” Oliver says, while noting the world now has oil reserves and Russian supply that could help fill the gap.

Prime Minister Anthony Albanese prefers a steady-as-she-goes approach over projecting urgency. In the face of what the International Energy Agency says is the biggest oil shock ever, he has tried to avoid doomsday talk as........

© Brisbane Times