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RBA now twice as likely to hike interest rate as US-Iran war drives fuel prices higher

energy_supply_shockAustraliaThe Guardian21 Jul, 15:00 UTC

Context

Experts warn global energy market at a ‘critical juncture’ with escalating Middle East crisis expected to further drag on a slowing Australian economy Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast The likelihood of a Reserve Bank interest rate hike has doubled according to market forecasts, as the escalating Middle East crisis once again drives fuel prices higher amid dwindling global oil reserves. The total breakdown in the fragile ceasefire between the United States and Iran has sent the international Brent crude benchmark surging by 23% over the past two weeks and back within reach of $US90 a barrel. Continue reading...

What it means

No call: the only market channels here were low-conviction — below our selectivity bar, where the track record shows no reliable edge.

Causal chain

No clear market signal

How to read a signal
Severity
the event's market impact, 1–5
Direction
/ likely price move for the asset
Exp. move
the size of the abnormal move we'd expect if the call plays out — not a claim a move will happen:
Ssmall<1%
Mmoderate1–5%
Llarge>5%
Most flagged events don't move beyond noise; those count against us (see the track record).
Timeframe
the window we measure over:
1dshort
5dmedium
21dlong
Conviction
how well-established the directional call is (textbook → speculative) — not a guaranteed outcome:
low
average
strong

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Not investment advice · for informational purposes only. Generated 21 Jul, 15:15 UTC