The ripple effects of Middle East conflict on Australian imports

The ongoing conflict in the Middle East is creating ripple effects across global supply chains, particularly impacting fuel supply in Australia. An RMIT expert explains how disruptions to energy, shipping and key inputs are beginning to place pressure on other imported goods and prices.

Dr Vinh Thai, logistics and supply chain management

"While sustainability efforts often focus on reducing reliance on fossil fuels, the reality is that petrochemical components, derived from crude oil and natural gas, underpin more than 6,000 everyday products and high-tech devices. A prolonged or expanding conflict in the Middle East will inevitably strain the supply of key inputs into Australia.

"Petrochemicals are foundational to the medical industry, from pharmaceuticals such as aspirin, vitamins and antihistamines to medical equipment like syringes and blood bags, as well as disposable healthcare items including diapers and sanitary products.

"Australia imports around 90 per cent of its medicines, with pharmaceutical products ranking among the country's top 10 imports, valued at approximately US$11.86 billion in 2025.

"If the conflict persists, the impact could intensify, particularly if exporting countries impose restrictions or bans, making it critical to closely monitor supply chain risks to ensure continuity of medical supplies.

"With no clear signs of the conflict easing, Australia may face longer shipping times, short-term shortages and temporary price increases for medical supplies as supply chain pressures build.

"These disruptions extend beyond healthcare and we will see the impact in our daily lives across many critical areas. Consumer goods, plastic products and fertiliser (which will flow into food production) could all be affected."

Dr Vinh Thai is a professor of logistics and supply chain management, specialising in maritime logistics. He is the founder of the Australian Maritime Logistics Research Network.

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