Australia could be forced to ration fuel in weeks: Expert warns country 'three times' at risk of supply chaos as Strait of Hormuz is closed again

By AIDAN WONDRACZ, ASSISTANT NEWS EDITOR, AUSTRALIA Published: 00:43, 22 July 2026 | Updated: 00:59, 22 July 2026 Australian drivers have been warned that fuel rationing could be brought in as early as September if the Strait of Hormuz remains closed. MST Financial senior energy analyst Saul Kavonic sounded the alarm on Wednesday, claiming the stakes were much higher than they were a few months ago. 'If the Strait remains closed, then by September, the risk that Australia will have to pursue some form of demand management or rationing grow significantly and, to give it a magnitude, it's probably two to three times the risk of what we saw in March and April,' he told the Herald Sun. 'Australia's fuel stock is actually higher than it was prior to the war, but they're still very low by global standards.'  The Strait of Hormuz has been closed once again following renewed strikes between the US and Iran last week. The latest exchange caused global oil prices to reach US$90 a barrel overnight on Monday.  Mr Kavonic warned that the recent closure of the Strait of Hormuz would hit global supply harder than the first time it was closed in February. He argued that countries were still able to access oil reserves, but that the supply had diminished over the following months. Australian drivers have been warned that fuel rationing could be brought in as early as September if the Strait of Hormuz remains closed (stock image) 'So far we've been living off the oil market credit card,' he said. 'We've only managed to get through the last few months by drawing on the stocks that we have, so we're on borrowed oil. 'And that credit card will max out within a few months if we continue to borrow the way we have because the Strait remains closed.'