Australia to See Budget Gain, Household Hit in Iran War, BE Says

Australia’s fiscal coffers are set to be boosted by higher liquefied natural gas and coal export prices fueled by the war in Iran, while households will be hit by surging gasoline costs, according to a research note from Bloomberg Economics.

The closure of QatarEnergy’s LNG export terminal could result in Australia’s LNG export revenues running 35-40% above government projections, said James McIntyre, who covers Australia for Bloomberg Economics. Disruptions to gas and oil supply are driving a switch to coal and the 20-25% rise in recent weeks could add about A$5 billion ($3.5 billion) to export receipts, he reckons.