Australia Doomsday Scenario Sees Oil Hit $200 on War Escalation

Australia’s government conducted scenario analysis in its annual budget under which the war in Iran intensifies, driving oil to $200 a barrel and throwing the global economy into chaos.

“This could occur if the conflict is protracted or if an escalation further damages energy and export infrastructure across the Middle East and shuts off oil supply from the region, including through the Red Sea trade route,” the Treasury said in Tuesday’s budget papers.