War-driven fuel crisis threatens recession in Australia
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Australia faces a deepening fuel crisis due to its heavy reliance on diesel imports, which may lead to a recession. The country's economy is vulnerable to disruptions in diesel supply, with high demand from industries such as trucking, mining, and agriculture.
Australia is experiencing a fuel crisis due to the war in Iran and the closure of the Strait of Hormuz. The country relies heavily on diesel imports, with 89% of its diesel consumption coming from abroad. Many basic industries are at risk of grinding to a halt due to the shortage. Diesel is crucial for transport, industry, and farming in Australia. The Labor government is trying to downplay the crisis, but modelling suggests a protracted war could lead to recession, high unemployment, and inflation. Australia's economic growth may halve to 0.7% by December, with unemployment rising to over 5%.
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