Australian business conditions were steady in June as cost pressures eased following a U.S.-Iran peace deal to end their conflict, a survey showed on Tuesday, although renewed hostilities have since sent oil prices higher again.
The survey from National Australia Bank showed its index of business conditions was steady at +3 in June for a third straight month. Confidence also improved to -5, from a deeply pessimistic -14 in May.
Impact of the Middle East Conflict
The improvement in business conditions was attributable to positive news from the Middle East after the U.S. and Iran signed an agreement to end a multi-month war that unleashed a global energy shock. Product price growth eased back to its February level in June and retail prices declined for the first time in seven years, the survey showed.
However, tensions flared up again in the Gulf this week. The U.S. renewed military strikes on Iran and reinstated its blockade of shipping via the Strait of Hormuz. Brent crude prices rose 2% to $85 a barrel, the highest point since mid-June, having jumped nearly 10% overnight.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
