Uncertainty Looms Over 2025 Geopolitical Landscape for Australia
As 2025 approaches, experts warn of potential global conflicts impacting Australia
Australia, Geopolitics, Inflation, Middle East, Ukraine, Donald Trump
Melbourne: As Australians enjoy their holidays and gear up for the new year, they might want to brace themselves for a rocky 2025. Experts are saying that the geopolitical scene could get pretty messy.
With ongoing violence in places like the Middle East and Ukraine, plus rising tensions in the South China Sea, it’s hard to predict how these events will hit home for Australians.
Jessica Genauer, an international relations lecturer at Flinders University, pointed out that uncertainty will be a major theme in global conflicts next year. She mentioned that we really don’t know how these ongoing issues will unfold.
She added that the consequences of these conflicts and the possibility of new ones are still up in the air. With Donald Trump potentially stepping back into the presidency, things could get even more unpredictable.
Genauer noted that Trump’s approach to foreign diplomacy can be quite erratic, often influenced by his personal relationships with other leaders. This unpredictability could lead to significant events on the world stage.
She also raised concerns about Iran, which is seen as a weakened regional power. Trump has been vocal against Iran, and Genauer fears this could lead to more aggressive actions from Israel, escalating tensions further.
If global conflicts heat up, Australians might feel the pinch in their wallets. Genauer explained that rising tensions in oil-exporting countries could lead to inflation and higher petrol prices.
Since the Ukraine war began in 2022, inflation in Australia has surged, with the cash rate now at 4.35 percent. Federal Treasurer Jim Chalmers recently warned that any spike in oil prices due to Middle East conflicts would be felt at the pump.
At that time, Brent crude oil was trading around $US77 a barrel, about seven percent higher. Treasury estimates suggest that a sustained 10 percent increase in oil prices could shave off 0.1 percent from Australia’s GDP and add 0.4 percentage points to inflation.