URGENT: Asia and the U.S. Just Cut Off Australia’s Oil Supply - Govt PANICS as 10 days of fuel left!

Here we go again.The war between the US and Iran just escalated to a level we haven't seen before.

Aussies are staring down the barrel of a second fuel price shock as the war between the United States and Iran escalates again.

closes.How long can development nations including Australia last without that oil is the big question and some analysts suggest you know it could be four to six weeks before we start having to do things like rationing.

Iran is once again bombing ships passing through the Strait of Hormuz.Peace talks have been abandoned by both countries.Trump has now threatened to take this war to hell.To make things worse, the biggest banks and economists around the world are now warning that the world is not ready for how bad this renewed oil crisis can actually get and have released some pretty grim oil price projections as well.And here in Australia, oil supply experts are warning that Aussies are officially on a countdown, that we will feel the full -blown impact of this second wave in T minus 10 days.Precisely, August the 2nd.

So the question is, what exactly happens in 10 days?Are we going to see a comeback of panic buying and Bowsers running dry?Most importantly, how worried should you be about it?Hey guys, it's Scott here.Who would have thought back in March that we'd still be talking about this crisis months later?But here we are.

That's the reality we are dealing with right now.But what feels a lot scarier and more concerning this time is that I'm seeing far more oil price projections, far more warnings from oil experts around the world, and far more headlines warning us about the gravity of this crisis.situation.But of course, you can't believe every headline you read.You have to stop and ask yourself, how much of this doom and gloom is actually real and backed by data?How much of it is just noise?

What should you, watching this video, realistically be preparing you and your family for?Well, that's exactly what we're going to unpack in today's video.We're going to look at exactly what's happened in the Strait of Hormuz over the last few days, why experts around the world are suddenly becoming much more concerned, where Australia stands in all of this, and most importantly, what Aussie should be bracing for over the coming weeks.subscribe, hit the bell icon.Let's get into it.shipping lane every single day.

So the moment ships stop moving through there, the oil markets do start panicking.Trump announced that the U .S.would effectively become the guardian of the Strait of Hormuz and proposed charging ships a 20 % fee for safe passage through the gateway.Now, depending on the size of the cargo, that's been estimated at roughly U .S.

$32 million for a single ship.Iran responded just a few hours later, mocking Trump's 20 % fee and offering to let ships pass safely for a fee of U .S.$2 million.I wonder how long we have until we have to pay for this toll to fill up our tanks.the oil markets are once again in a state of extreme panic.

Crude oil has jumped as traders started pricing in the possibility that supply could remain disrupted for much longer than originally expected.But the fact of the matter is, we have all been here before.Back in March, when the Strait of Hormuz was effectively shut down, Australia, along with the world, somehow managed to avoid the worst case scenario.Oil prices certainly went up, but they never completely spiraled out of control.So why is this time different?Well, we have to look at the IMF's report for the answer.

Turns out we survived the first shock because we still had a few safety nets left.Take a look at this chart.By the end of May, more than 1 .1 million barrels of oil had failed to reach the global market.In plain English, it means the war created a supply gap of more than 1 .1 billion barrels, and countries had to tap their emergency oil reserves to plug that gap.Another shocker?Well, look at this chart.

This disruption is actually much more severe than the 1973 oil crisis, the Iran -Iraq war, and even the Gulf War.So naturally, you start wondering, if the disruption is that severe, why didn't oil prices explode?This is important for you to understand.So lock in, because this will have ripple effects on Australia and eventually on the world.on your petrol bowser and inflation across the country.See, we had three things working in our favor.

All countries went into the crisis with a small surplus of oil.Nations outside the Gulf, including the US, Guyana, Venezuela, and Russia, increased production.People also started using less fuel as prices rose.But most importantly, as I mentioned earlier, a huge chunk came from the drawing down of inventories and emergency reserves that had been sitting there for years.to us getting through this period but you can only do this for so long you can only do it for so many times the IMF is now warning that theinventories are much lower, spare production has already been used, and demand has already been squeezed.

In other words, the world is simply starting this second shock from a much weaker position than it did a few months ago, and Australia is no exception.Even if the Strait of Hormuz reopened tomorrow, the oil wouldn't immediately start flowing like normal again.Industry estimates suggest it could take two to three months before shipping, insurance companies and oil producers return to normal operations.Now that's the global picture.Australia has another problem on top of all of that.We here in Australia have never held a particularly large fuel reserve ourselves.

As a member of the International Energy Agency, we have signed up and were supposed to have access to around 90 days of net oil imports.But we have consistently been below that target.Today, we have roughly 41 days of petrol, 37 days of diesel and 33 days of jet fuel.And remember, Australia doesn't produce enough refined fuel for itself.We rely heavily on Asia.But then you have to ask, where does Asia get its oil from?

A lot of it still comes from the Middle East.And a lot of refined fuel also comes from Russia.At the same time, Russia's refinery network has been under attack from Ukraine.This is not getting a lot of headlines in the news, but Russia and Ukraine are going at it right now.And Russia has repeatedly prioritized its own domestic fuel needs before exports whenever supply comes under pressure.So you can see why economists are becoming much more nervous this time.

And that's exactly why all eyes are now turning towards Australia, because over the next couple of weeks, we've got another major risk sitting right in front of us.On August 2nd, the temporary fuel excise relief is due to expire.Now as I record this video, nobody knows exactly what the government is going to do next.They could decide to extend it, allow it to expire,or come up with another solution altogether.But that's precisely why economists are watching this date so closely.

On top of that, because of the depleting emergency oil reserves, another shock to the oil supply could push prices harder than they did back in March.Now, you might be thinking, that's all happening overseas.Australia buys its fuel from Singapore and other Asian countries, so surely we're going to be okay.Well, not quite.Asia doesn't produce enough oil to meet all of its own needs.Just like Australia, countries across Asia rely on crude oil arriving from the Middle East, Russia, and other major oil -producing nations.

Now, we've already spoken about what's happening around the world.Russia's refinery capacity has already been disrupted, the Strait of Hormuz is blocked, and oil reserves have dried up.That means countries across Asia are also competing for a smaller pool of crude oil.of available oil.And whenever that happens, governments focus on keeping their own economies running before increasing exports overseas.We've already seen Russia take that approach.

So what if Asia follows suit?And even if Australia continues receiving fuel from Singapore and the rest of Asia, there's another problem.Any fuel that eventually reaches us will be more expensive because every extra cost along the way gets built into the final price.Higher oil prices, more expensive shipping, higher insurance premiums, longer shipping routes, and any additional fees all work their way through the supply chain until they eventually show up every time Aussies fill up at the petrol station.So after everything that we've covered today, what should everyday Aussies actually do?Well, the first thing I'd say is do not panic.

Preparing and panicking are two very different things.Every time there's a global event like this, people rush to service stations and assume the worst.But history shows that rarely helps anyone.Instead, focus on the things you can actually control.If you've been lucky enough to receive a tax refund,or you've managed to put a little money aside recently, please think twice before spending all of it straight away.

If fuel prices stay high up for longer, those costs will eventually flow through to groceries, transport, and a whole range of everyday expenses.So having a little extra cash sitting there gives you more flexibility if living costs continue rising.Also, spend a couple of minutes comparing fuel prices before filling up.The ACCC and each state have fuel price apps, and it's surprising how much prices can vary between service stations that are only a few kilometers apart.I have that link for you in the caption below.But if there's one thing this whole situation has reminded us of, it's that Australia really needs to start taking energy security much more seriously.

We're one of the world's biggest energy exporters, yet we still rely heavily on imported refined fuel to keep our economy moving.Whether the crisis gets worse or settles down, I think it's time we started asking whether Australia should refine more of its own fuel and build larger strategic reserves because these global supply shocks aren't going away anytime soon.anytime soon.So what do you think happens next?Do you think this is just another short term scare that will blow over in the next few weeks or do you think oil prices have a lot further to go from here?And more importantly, are you doing anything differently to prepare or are you just going to wait and see what happens?

Let me know your thoughts and what you're planning to do in the comments.I generally love to hear what you have to say and I read every single one.If you found today's video useful, make sure to hit like and subscribe.Remember, I cover the economy, government policy, and property every single day so you can stay ahead of the trends that affect your money and your family and your future.Thanks so much for watching and I'll see you guys at the next video.