Middle East shock a test for treasurer and RBA

April 17, 2026 — 5:07pm

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Australia’s economic outlook is darkening as hostilities in the Middle East drag on.

Consumer confidence registered its biggest fall since the onset of the COVID pandemic in April as soaring fuel prices sapped household budgets. The price of unleaded petrol in Sydney has now been above $2 a litre for more than six weeks and uncertainty over fuel supplies persists.

Business sentiment has also soured.

The longer the Iran crisis lingers, and the longer petrol prices stay high, the greater the risk that the slump in confidence will result in actual economic weakness.

While the jobs market has been fairly resilient........

© The Sydney Morning Herald