It’s dire in the Strait of Hormuz, so budgets need skill, ambition and care

March 11, 2026 — 5:00am

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The Strait of Hormuz, between the Iranian port of Bandar Abbas and Oman’s Musandam Peninsula at the mouth of the Persian Gulf, is a long way from Australia. But this narrow waterway, one of the choke points of global shipping, is now causing more than a tickle in the throat of our economy.

The US-Israeli attacks on Iran prompted Tehran to threaten shipping by effectively closing the strait. That, combined with Iran’s retaliatory strikes on Saudi Arabian and Qatari refineries, pushed oil prices above $US110 a barrel at the weekend and, in turn, roiled world markets.

That kind of rise, if at all sustained, flows through to the bowser, transport costs and grocery prices. A compounding complication is the strait’s role as a major channel for fertiliser supply.

With Australians already struggling with inflation, and opposition politicians in........

© The Age