Why you need to look beyond the price of fuel

Markets and economy

Navigating volatility

In this video clip, Vanguard Global Chief Economist Joe Davis cautions investors against overreacting to rising oil prices, and emphasises that only substantial and sustained oil price increases – among other factors – would ultimately drive significant economic and market outcomes.

https://youtu.be/Eu55d7n_GvU?si=F0sqqD47g3FedTy_

Heightened tensions and uncertainty in the Middle East have led to a strong bout of market volatility since late February 2026.

In Australia, the most obvious impact of these recent tensions – apart from a volatile sharemarket – has been a sharp increase in the cost of fuel. As at 17 April 2026, the cost of ULP 91 (Australia’s most widely used fuel, powering most of the vehicles on our roads) averaged $2.20 a litre.

While oil price volatility is a risk factor Vanguard continuously monitors, not every increase has meaningful long-term consequences for growth or investors.