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In this episode of DBrief, Louise McGrath and Jeff Wilson from the Australian Industry Group return to the conflict in Iran, as impacts move beyond fuel prices and deepen across industrial supply chains. 
 
They explain why businesses may be entering a new stage of the shock - shifting from monitoring risk to absorbing real costs, operational uncertainty and disruption. The discussion highlights how freight and insurance withdrawals, shipping diversions and emergency surcharges are becoming early pressure points, well before widespread product shortages emerge. 
 
Drawing on member intelligence, Louise and Jeff explore where risks are building across critical inputs including resins, plastics, packaging, nitrile gloves, construction materials and bitumen. They examine why Australia’s position at the end of long petrochemical supply chains matters, how force majeure notices are amplifying uncertainty, and why the effects of this crisis are likely to persist well beyond any near‑term resolution. 
 
Key takeaways

  • The impact of the Iran conflict is no longer limited to fuel prices, with freight, insurance and shipping disruptions now flowing through supply chains.
  • Critical inputs such as resins, packaging materials, nitrile gloves, PVC products and bitumen are emerging as key pressure points. 
    Force majeure notices and unclear delivery timelines are making investment, workforce and production planning more difficult for businesses.
  • Government responses are evolving, with fuel security measures, supply chain coordination and economic resilience tools being prepared if shortages worsen.
  • Businesses are moving beyond “wait and see”, actively assessing supply chain exposure, working with employees, and planning for reduced fuel and material availability. 

Further information and resources:

  • Experiencing fuel or supply disruptions? Report impacts on your business here. We would welcome any information you can provide.
  • Australian Industry Group is monitoring the evolving impacts of the conflict in the Middle East on Australia's fuel supply and broader supply chains. Read more. 

Contact the Industry Development & Policy team here.

 

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Louise McGrath

In her role as Australian Industry Group’s Head of Industry Development and Policy Louise provides strategic leadership and guidance for Australian Industry Group’s policy agenda in building competitive industries through global integration, infrastructure development and innovation. She ensures that through policy leadership members have a voice at all levels of government, by representing and promoting their interests on current and emerging issues.

Louise represents Australian Industry in several multilateral forums, such as the B20 Taskforces, Global Business Coalition, and the East Asia Business Council working group on RCEP. She advocates for the interests of Australian Industry Group members during Free Trade Negotiations and translates those agreements to support the strategic aims of members. She is a member of CSIRO’s Responsible Use of Artificial Intelligence Think Tank and the Manufacturing Advisory Group, the NESP Sustainable Communities and Waste Hub and the Advisory Group of The Australian Consortium for ‘In-Country’ Indonesian Studies (ACICIS).

Louise has studied a Bachelor of Arts (Arabic Language and Culture) at Deakin University and an Advanced Diploma in International Trade at RMIT. She has also studied Arabic at universities in Jordan and Egypt.

    Dr Jeffrey Wilson

    Jeffrey Wilson is Head of Research and Economics at Australian Industry Group.

    He leads our economics team and provides strategic direction in developing the research program to support our advocacy, service delivery and policy activities.

    Dr Wilson specialises in international economic policy, with a focus on how trade and investment shape the Australian business environment.

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