Middle East conflict highlights Australia's energy security challenge

Middle East conflict highlights Australia's energy security challenge

The conflict in the Middle East is continuing to affect global energy markets and fuel prices, highlighting Australia's reliance on imported fuel and petrochemical supply chains. An RMIT expert explains the broader impacts on businesses and why building long-term energy and supply chain resilience should remain a strategic priority.

Dr Vinh Thai, School of Accounting, Information Systems and Supply Chain:

"It's no surprise that 72 per cent of Australian businesses have been negatively affected by fuel prices or availability. It's an indication that fuel is not simply a transport sector issue but very much a systemic supply chain risk affecting the entire economy.

"Conflict in the Middle East has had a direct negative impact on petrochemicals. There is a chain effect because crude oil and LNG are so fundamental to the production of petrochemicals, and petrochemicals are so fundamental to other manufacturers.

“Everyday items, from medicines to computer chips in common electronics, are made with petrochemicals. We have built an economy and chemical industry on petrochemicals.

"While the Government has stockpiled Australia’s strategic oil reserves, the ongoing uncertainty in the Middle East serves as a refreshed call for a more strategic approach to building energy security and enhancing supply chain resilience in the country.     

“Australia imports more than 90 per cent of its refined fuel. That's efficient when markets are stable, but it leaves us exposed when global disruptions occur. 

"Diversification is the name of the game. We need to diversify where we source fuel from while also building Australia's own capabilities so we're less dependent on overseas supply.”

Dr Vinh Thai is a professor of logistics and supply chain management at RMIT University, and the founder of the Australian Maritime Logistics Research Network (AMLRN).

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

23 July 2026

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23 July 2026

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Middle East conflict highlights Australia's energy security challenge

The conflict in the Middle East is continuing to affect global energy markets and fuel prices, highlighting Australia's reliance on imported fuel and petrochemical supply chains. An RMIT expert explains the broader impacts on businesses and why building long-term energy and supply chain resilience should remain a strategic priority.

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