Please click here to view Shane Oliver’s views on the impact the Gulf War will have on markets.
Key points raised are :
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The start of a war between the US and Israel and Iran poses the risk of a significant disruption to global economic growth given the likelihood of significant disruption to the supply of oil, particularly through the Strait of Hormuz.
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This in turn could contribute to a correction in share prices.
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A $US40 a barrel spike in oil prices could add 40 cents a litre to petrol prices with a threat to growth & inflation. As a “tax on spending” the RBA should look through it.
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For investors: share market falls are normal, timing markets is hard and the key is to stick to a long-term strategy.
