Biden warns Israel against strikes on Iran as oil prices surge

Oil prices surged after U.S. President Joe Biden mentioned potential military strikes on Iran's oil facilities. Following the spike, Biden quickly retracted the idea, warning Israel against such actions, which could lead to inflation and economic downturns. Iran's oil production has increased despite sanctions, with exports reaching multi-year highs, primarily to China. An attack on Iran's oil infrastructure could disrupt global supplies, forcing China to seek alternative sources, likely from Russia. In Australia, rising oil prices could benefit energy exporters but also increase production costs for goods, impacting inflation. The Reserve Bank of Australia may delay interest rate cuts due to the heightened risk of inflation from escalating tensions in the Middle East.