The Iran-backed Houthi rebels have intensified attacks on Saudi Arabia, disrupting energy exports and contributing to rising fuel prices in Australia.This escalation comes as US President Donald Trump considers further military action against Iran, with no immediate signs of diplomatic progress.The conflict has already caused significant price increases, with unleaded petrol averaging $1.85 and diesel at $2.26.The temporary fuel excise discount ending on 2 August is expected to compound costs, leading to further price volatility.

Australia's reliance on regional Asian fuel imports means the situation remains precarious, though government assurances state supplies are secure.

The war's impact extends beyond fuel costs, affecting industries reliant on diesel and adding pressure on households already struggling with living expenses.

With tensions escalating in the Red Sea and Strait of Hormuz, experts warn motorists to prepare for sustained higher prices until the conflict de-escalates.