As oil prices rise close to US$110 a barrel, could the government introduce another fuel excise cut?
The Strait of Hormuz has been closed for months, limiting Saudi Arabia's oil exports. Now Iran-backed Houthi rebels in Yemen have taken control of key locations on the Red Sea, forcing the closure of the Bab El-Mandeb Strait, the alternative export route.
Saudi Arabia's East-West pipeline has also been struck by missiles launched from Iraq, likely fired by Iran's proxies.
Oil passing through the Persian Gulf and the Red Sea accounts for about 35 per cent of global supplies. Even if some can be re-routed through the Suez Canal, it's another shock to global prices that will reverberate through the Australian economy.
Political correspondent Melissa Clarke reports, plus Sarah Ferguson interviews the Climate and Energy Minister, Chris Bowen.
0:00 - Why are oil prices surging?
4:43 - Interview with Chris Bowen
7.30 is the ABC's flagship current affairs program, delivering original journalism, exclusive investigations, in-depth analysis and interviews on the major issues affecting Australia and the world.
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