Biden warns Israel against strikes on Iran as oil prices surge and global economy faces risks

Oil prices surged after U.S. President Joe Biden mentioned military strikes on Iran's oil facilities. Prices jumped 5% immediately and rose 8% by the week's end. Biden later advised Israel against such actions, seeking alternatives. Iran's oil exports have increased despite sanctions, with the country producing about 3% of global output. An attack on its facilities could disrupt global oil supplies, particularly affecting China, which relies heavily on Iranian oil. Higher oil prices could reignite inflation and impact economies worldwide, including Australia. While rising prices benefit energy exporters, they also increase production costs, potentially delaying interest rate cuts by the Reserve Bank of Australia.