The conflict in Iran, initiated by the Donald Trump administration and Israel, has triggered a global economic crisis being felt acutely in Tasmania. Brent crude is surging past US$100 per barrel amid disruptions in the Strait of Hormuz. With the Reserve Bank of Australia raising interest rates, the war has delivered a direct hit to the cost of living.

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This is not abstract economics. Attacks on energy infrastructure and reduced tanker traffic have choked global supply, reinforcing fears of prolonged disruption. For Tasmania, which is distant, import-reliant, and exposed, the consequences are immediate.

In northern parts of the state, petrol prices hovering above $2.20 a litre are not a temporary spike but an early warning. Analysts are already pointing to $2.50 as a realistic near-term ceiling if instability persists. At the same time, the recent rise in interest rates is compounding pressure on households already stretched by mortgage repayments and everyday costs.

This combination of geopolitical instability abroad and tightening monetary policy at home is creating a perfect storm for Australian consumers. A recent discussion I was involved in about finding ways to save money wherever possible prompted an investigation into the value of an electric vehicle (EV).

For years, EV adoption has been positioned primarily as an environmental decision. With the Iran conflict potentially lasting for an extended period, the economic framing could outweigh the environmental one, particularly in Tasmania.

Take the drive between Launceston and Hobart, something many of us do regularly. At roughly 200 kilometres, it sits well within the real-world range of most modern electric vehicles. What was once a journey requiring planning and compromise is now routine for EV owners.

More importantly, it is cheaper, and dramatically so.

A petrol-powered sports utility vehicle (SUV) making that trip today would cost upwards of $50 in fuel. An equivalent electric vehicle, charged at home, can complete the same journey for closer to $15, and often less when taking advantage of off-peak pricing through providers like Aurora Energy. In a high-inflation environment, those savings accumulate quickly.

Critics point to Tasmania's colder climate and hilly terrain as barriers. These factors do affect battery performance, but they are predictable, manageable, and increasingly mitigated by advances in technology. By contrast, the volatility of global oil markets, now visibly tied to the US-Israel-Iran conflict, is neither predictable nor controllable.

Australia cannot influence events in the Middle East, stabilise shipping routes through the Strait of Hormuz, or insulate itself from global oil shocks. But its citizens can reduce their exposure to them.

Electric vehicles, powered by locally generated renewable energy, offer a path toward that resilience. A significant take-up of electric vehicles by Tasmanian motorists could shift daily budgets, currently at the mercy of volatile global commodity prices, to a more affordable, controlled option.

The current crisis has stripped away the illusion of choice.

If petrol prices remain elevated, as the evidence suggests, the question facing Tasmanians is no longer whether electric vehicles are viable. It is whether continuing to rely on petrol makes economic sense at all.

Craig Thomson is the editor of The Examiner.

Tributes & Funerals Notices

Barwick , Heather Jean2026

Bonney (Nee Bryan), Bernice Mary2026

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