The weekend saw a seismic escalation in the conflict in the Middle East, as the US bombed Iran’s key uranium enrichment facilities. This followed Israel’s campaign of military intervention on the justification that Iran must be prevented from developing nuclear capabilities.

The situation represents a dramatic increase in geopolitical instability in the region – a key source of global fossil fuel energy production and exports – and has potentially dire consequences for worldwide energy markets and economies dependent on imports for their energy needs. Australia is one such economy.