US-Iran war: Hopes for historic EU free trade deal as fears grow of Australian recession amid rate hikes

Shadow defence minister James Paterson said he was relieved that no one was hurt in the attack on the Al Minhad airbase.

“The attack on Australian facilities at Al Minhad is another reminder that the Islamic Republic regime in Iran is no friend of Australia,” he said.

“This is why the Coalition supports the deployment of the E-7A Wedgetail surveillance aircraft to help defend partners like the UAE who are being targeted by Iran, despite not participating in offensive operations.

“The Government must ensure that it is providing all the resources and support necessary to protect the safety of our service men and women on this important operation.”

WA Premier Roger Cook has vowed to ensure the State gets its “fair share” from the national stockpile of fuel when National Cabinet discusses how to distribute it.

The Albanese Government has announced it will release 20 per cent of the minimum stock obligation, to unlock about six days worth of diesel and five days of petrol.

Mr Cook does not see rationing as necessary for now, saying WA has adequate supply until May.

But he could not rule it out later, or fuel excise rebates for industry. However, he said distribution was the first priority.

“I think that National Cabinet will consider immediate challenges,” Mr Cook said.

“I don’t think rationing will be part of that consideration. It’s not necessary at this stage.”

Australia is in danger of sinking into a recession if a prolonged Iran war forces the Reserve Bank to hike interest rates four more times, a former RBA economist says.

Shadow treasurer Tim Wilson is also warning government-fuelled inflation risked sparking a recession, following a warning from Reserve Bank governor Michele Bullock that more rate rises could spark an economic contraction.

An 18-year high Reserve Bank of Australia cash rate of 5.1 per cent — with four more RBA rate hikes — would add $489 to monthly repayments on an average new $736,000 mortgage and strip another $5868 a year from borrower budgets.

Such a financial strain is now regarded as a real danger should the Middle East conflict linger and push mortgage rates to levels last seen in late 2008 during the Global Financial Crisis.

Former Reserve Bank economist Zac Gross said a recession was also a possibility if the RBA had to keep hiking rates to bring inflation back to target amid soaring petrol prices.

“Look, there’s always a risk of recession. Bad things can happen and it’s always got to be a live possibility,” he told The Nightly.

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European Commission President Ursula von der Leyen will travel to Canberra next week for what both sides hope is the inking of a long-running trade deal.

Heightening expectations for an agreement, she’s bringing EU trade commissioner Maros Sefcovic, who held further talks on the deal with Australian Trade Minister Don Farrell on Monday night.

An EU trade agreement is worth $10 billion to Australian exporters in the first year, opening up access to 450 million more customers, and would slash thousands from the price of European cars and other imports.

Ms von der Leyen will be in Australia from Monday to Wednesday, with the key meeting taking place on Tuesday.

It is her first visit to Australia.

​Full story here.​

Australia’s competition watchdog has raised alarm over diesel supply, warning regional areas are feeling the strain.

Australian Competition and Consumer Commission deputy chair Mick Keogh said diesel — not petrol — was now the key concern, with demand continuing to rise across the country.

“We use twice as much diesel as we use petrol,” he said.

“Our petrol consumption is slowly declining with more efficient and electric vehicles - but diesel use is increasing.”

Mr Keogh said the growing reliance on diesel across farming, transport and industry was adding pressure to supply chains.

“A whole range of industrial uses, farming — all those sorts of things — we’re slowly increasing diesel,” he said.

The warning comes amid broader fears that fuel supply disruptions could hit Australia’s most remote communities hardest.

Explosions have been reported near the US embassy compound in Baghdad after fresh attacks struck the heavily fortified diplomatic zone overnight.

Witnesses and security sources said that blasts were heard in the early hours.

Journalists in the Iraqi capital also reported hearing explosions near the embassy, which sits inside the tightly guarded Green Zone — home to foreign missions and international organisations.

The US compound has been targeted multiple times since the outbreak of the war, raising fears of further escalation in the region.

An Australian accommodation block and medical facility at the Al Minhad airbase in the United Arab Emirates have been damaged in an Iranian attack but no military personnel were hurt.

It is the second strike by Iran on the base near Dubai since the conflict started on February 28, prompting fears that Australian forces are being targeted because of the assistance sent to the UAE.

Dozens of ADF members remain stationed at Al Minhad in a section known as Camp Baird, running Headquarters Middle East in support of up to 12 operations across the region.

Prime Minister Anthony Albanese said the base was hit with a projectile.

Full story here.

Perth had the biggest petrol price rise across the nation in the past week, while Sydney had the largest diesel spike.

The ACCC’s latest weekly fuel price update showed that petrol went up by an average 59.5 cents in Perth, while disesel cost an average 67.8c more in Sydney.

“We have heard concerns from residents, businesses and primary producers about the impacts of diesel shortages,” an ACCC spokesperson said.

“We are engaging with industry participants and other agencies to ensure effective fuel distribution and are ready to assist where it provides a net public benefit.”

Across the eight capital cities, wholesale petrol prices increased by an average of 42c a litre.

Qatar’s Defence Ministry says it has intercepted a missile attack.

“Armed forces intercepted missile attack which targeted the State of Qatar,” it said.

Getting fuel to farmers who will soon be harvesting is the priority, according to Costa Group chief executive Marc Werner.

“We need to make sure that the allocation ... for the horticultural sector or for the agricultural sector is going into those regions where we actually now start harvesting because we are just about to commence harvesting and now we have this kind of situation and the harvesting schedule and the harvesting windows, there needs to be a synchronisation, if that makes sense, from a fuel supply perspective,” he said.