US/Israel Conflict Against Iran Causing Headaches at the Bowser
The escalation of the US/Israeli-Iran war that was ignited in late February 2026 by coordinated US and Israeli strikes on Iranian nuclear and military sites, has plunged global energy markets into turmoil.
Iran’s response – targeting tankers, deploying mines and effectively choking off the Strait of Hormuz – has slashed oil flows through the critical artery, which carries around 20 to 21 million barrels per day (roughly one fifth of global seaborne crude and substantial LNG volumes).
Tanker movements have plummeted, with many vessels rerouting or idling, which has driven Brent crude prices well above $100 per barrel in volatile sessions through mid-March.
Australia imports approximately 90 percent of its liquid fuels and a significant amount of refined products from Singapore and South Korea, who primarily use the crude delivered via the Strait.
Wholesale benchmarks spiked sharply which has fuelled panic buying, sporadic regional shortages and rapid retail price surges.
The Federal Government has temporarily relaxed fuel standards to allow for higher sulphur content (adding an estimated 100 million litres monthly to the supply) and releasing portions of strategic reserves (nearly 20 percent in some categories which amounts to roughly six days of petrol and five days of diesel to be used nationally) to alleviate pressure.
Within Harden, standard unleaded petrol could be found at $1.50 to $1.70 per litre of fuel. A rise of more than 80 cents per litre across all fuel types has since been seen.
Major Stations include:
AUS Petroleum Harden: As of March 18, E10 sits at 224.9, U91 at 225.9, U98 at 245.9 and Diesel at 276.9 per litre.
Caltex Harden: As of March 18, U91 sits at 244.9, U98 sits at 264.9 and Diesel at 285.9 per litre.
Ultra Harden: As of March 18, E10 sits at 227.9, U91 at 229.9, U98 at 251.9 and Diesel at 279.9 per litre.
In nearby Jugiong:
Enhance Jugiong: As of March 18, U91 sits at 231.9, U98 at 256.9 and Diesel at 279.9 per litre.
National trends underpin these local realities with ACCC showing retail unleaded went up 48 to 59 cents per litre with diesel experiencing a 60 to 70 cents per litre rise. Some outlets in nearby regional towns have reported increases in petrol as high as $2.70 to $3.00 per litre, or higher.
Prolonged conflict from the US/Israel-Iran war could sustain elevated prices across Australia.
For Harden and surrounding communities, the impact from this could extend beyond the pump, including inflated farming costs from elevated diesel prices, freight for produce and essential goods, all of which can feed into broader inflation.
National Fuel Shortages and Australia’s Vulnerability
The conflict has exposed Australia’s fragile fuel security. The nation imports approximately 90 percent of its refined petrol and diesel, primarily from South Korea (accounting for 26 percent of imports), Singapore (22 percent) and Malaysia. These Asian refineries in turn source much of their crude oil from the Middle East – a supply chain heavily dependent on the Strait of Hormuz.
Australia’s remaining two domestic refineries cannot meet demand, leaving the country exposed. The Federal Government responded by releasing up to 20 percent of emergency stocks (around 762 million litres of petrol and diesel, or roughly six days’ worth of petrol and five of diesel) to ease pressure on wholesalers and retailers.
The Strait of Hormuz: The World’s Critical Oil Chokepoint
At the heart of the crisis is the Strait of Hormuz – the narrow waterway between Iran and Oman through which roughly 20 percent of the world’s seaborne oil and significant LNG volumes pass daily (about 20 million barrels). Tanker traffic has plummeted by up to 70 percent since Iran began attacking vessels in retaliation for the US-led strikes, effectively halting much commercial shipping. This has caused the largest oil supply disruption in history, sending global Brent crude prices soaring and rippling through to Australian pump prices.
President Donald Trump has repeatedly called on allies including Britain, France, Japan, South Korea, China and NATO nations to send warships to reopen the Strait, warning of “very bad” consequences for those who refuse. Australia has declined to contribute vessels.
Trump’s Shifting Rationale for the Conflict
Trump launched the US-Israeli strikes on February 28, 2026, after failed nuclear negotiations. His stated reasons have varied: preventing Iran from acquiring nuclear weapons (which he claims would have sparked World War III), degrading Tehran’s ballistic missile and enrichment capabilities, countering regional proxy threats, and enforcing a “maximum pressure” campaign. He has also referenced past Iranian rhetoric and the need to eliminate nuclear risks entirely.
On when the conflict will end, Trump’s messaging has been inconsistent. Initially framing it as a broader operation, he has since called it a “limited campaign” whose military goals are “mostly met,” declaring “we won” at a rally before adding “we’ve got to finish the job.”
In recent days he described it as a “little excursion” that “won’t be much longer” and suggested the US could exit “any time,” yet aides continue internal debates over declaring victory. Iran shows no signs of capitulating quickly.
As the situation evolves, Harden residents and businesses face ongoing uncertainty. With global markets volatile and the Strait of Hormuz likely to remain contested, local fuel prices may stay elevated for weeks or longer.
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