“If Iran do successfully block the Strait of Hormuz, then you’ll end up with a bigger spike in oil prices and petrol and that will have a severe economic impact.”

“The price of airfares could go up, as well as plastic prices, which affects a lot of household goods.”

The Strait of Hormuz connects oil and liquefied natural gas (LNG) production in the Middle East to global markets via the Arabian Sea and the Indian Ocean. Source: Anadolu / Murat Usubali/Anadolu via Getty Images

Australian Travel Industry Association chief executive Dean Long said airfares were not likely to increase immediately following the escalation in conflict in the Middle East.

“Beforehand, there were multiple ways to catch up delays and stay on times, but in reality, there is a very narrow window to catch up delays, and there is less room for error by the airlines.”