RBA governor Michele Bullock says Australia’s economy can withstand risks associated with the Iran conflict without falling into recession. Multiple outlets report that some analysts have warned the war could contribute to weaker growth and higher prices, raising the possibility of “stagflation” (slow economic growth combined with inflation). Bullock disputes that outlook, arguing the economy is positioned to manage the shock and that recession is not an inevitable outcome. The reports characterise the debate as a split between analysts forecasting downside risks and Bullock’s more positive assessment of resilience. While the sources agree on the concern that geopolitical tensions could affect economic conditions, they differ in the tone of the outlook: Bullock emphasizes the capacity of the economy to absorb impacts, whereas other commentators focus on elevated uncertainty and the potential for both demand and inflation pressures to move in unfavourable directions. Overall, the articles present Bullock as cautioning against a predetermined recession narrative while acknowledging that war-related risks remain part of the economic backdrop.