Westpac warns that Australian diesel prices could rise above $3 per litre, citing a combination of global oil-market risks and domestic economic pressures. The bank points to uncertainty tied to a fragile US-Iran ceasefire and related tensions, which can affect crude oil supply expectations and global fuel pricing. Westpac also highlights that inflation is already at record levels, and that the economy is forecast to experience several quarters of negative growth. These factors, the bank says, could leave households facing higher costs even if conditions in the Middle East improve. The warning is framed as a risk scenario rather than a confirmed outcome, with diesel prices influenced by international events and market dynamics. Overall, the reports describe Westpac’s outlook as cautionary, linking potential fuel-price increases to both external geopolitical uncertainty and Australia’s current macroeconomic environment.