Australians can expect to be squeezed by fuel-related inflation for at least six months, a top economist has warned.

The US-Israeli attacks on Iran and Iran's subsequent closing of the Strait of Hormuz have seen unprecedented worldwide oil price shocks, with costs ultimately being passed on to consumers.

AMP deputy chief economist Diana Mousina predicts Australians face at least half a year of soaring prices – and that could extend swiftly.

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"Oil prices have doubled from their pre-war levels and sharemarkets have had a modest drawdown," she said in an article for AMP's Econosights.

"But, if there is no resolution to resuming oil supply, oil prices will surge further and have a significant downward hit to demand."

Mousina also warned the risk of a further 5 to 10 per cent drawdown in markets remained "very high".

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"But our base case for now is that US and Iranian negotiations are successful over coming weeks," she said.

"However, it may take a while for oil prices to normalise again. So higher inflation is likely for (up to six) months."

Mousian estimated a household using 35L of petrol a week for driving would have been spending about $60 a week before March, rising to $88 a week in March, and would likely decline to $78 a week in April if there were no further oil price rises.

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The lengthy oil shock is likely to have further knock-on effects, including slower consumer spending and lower GDP growth.

Mousina also predicted the Reserve Bank of Australia would raise interest rates – a reflex learned from the COVID-19 pandemic.

"While usually central banks look through supply shocks as one-off increases to prices, the problem is higher inflation expectations which can increase wage demands and higher prices seeping into other parts of the supply chain, much as it did through COVID-19," she wrote.

"The 'PTSD' shock of COVID-19 will make central banks nervous to see the current supply shock as a 'transitory' factor and will keep central banks hawkish."

Mousina predicted another increase to interest rates in May, and the "chance" of another in later 2026.

"But this means that there is a high chance of rate cuts in 2027 as GDP growth slows," she said.

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Exclusive: Nearly one in three nine.com.au readers confessed they couldn't afford private health insurance even before this week's major price hike, according to an exclusive survey.

On Wednesday health insurers across the nation increased premiums by an average of 4.41 per cent in the middle of a cost-of-living crisis.

It was the biggest hike since 2017 and will cost Australians an extra $80 to $160 a year, depending on their cover.

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Earlier this week, a survey from AI digital broker Konkrd suggested nearly one in four Aussies planned to downgrade or cancel their private health insurance due to the hikes.

But nine.com.au readers are telling a different story.

Up to 30 per cent of the 1121 respondents reported they didn't have private health insurance to begin with.

Many confessed it had become too expensive for them long before the latest price hike.

"I haven't been able to afford health insurance for decades," one reader said.

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Another told nine.com.au they had cut out holidays, clothes shopping and other expenses and still couldn't afford private cover even before premiums increased.

Just over 10 per cent of nine.com.au readers who did have private health insurance said they cancelled their cover in response to this week's price hike.

A little more than half of them moved to a cheaper policy; the rest are now uninsured.

About one in 10 respondents said they intend to cancel their current policy now that premiums have increased.

Nearly 80 per cent said they plan to keep their current policy even though it costs more.

"I'm too scared to cancel health insurance due to mine and my husband's age," one older Australian told nine.com.au.

It was a common concern among respondents aged 65 and over.

"Being a mature age couple we would feel vulnerable without private health cover, as the waiting time for non urgent treatment can be months and even years," one said.

Respondents who had decided to cancel or downgrade their cover said they just couldn't keep up with the rising cost of living.

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Paying for private health insurance on top of increased grocery, housing, and petrol prices just isn't feasible for many Aussies already struggling to make ends meet.

Many nine.com.au readers worry the situation is only going to get worse.

Nearly 80 per cent of respondents said they were at least 'slightly worried' about being able to afford private health insurance going forward.

More than one in three reported feeling 'very worried' about it.

"Any further increases may require me to cancel insurance altogether, as being a pensioner it is becoming extremely difficult to cope with cost of living," one reader said.

Close to half of respondents said they'd cut back on spending on holidays, clothes and other non-essentials to be able to afford private health insurance.

More than 10 per cent said they'd be willing to cut back on essentials like groceries and rent.

The nine.com.au poll, which runs once a fortnight, canvases the views of the Nine audience on 9Nation, which is an online community of our readers and viewers.

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

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French President Emmanuel Macron's increasingly tested relationship with US counterpart Donald Trump has taken another blow as the European leader issued a stern rebuke over the Strait of Hormuz.

Macron also expressed disgust at comments Trump made at a private event mocking Macron's relationship with his wife Brigitte.

Trump has indicated recently that the US does not consider itself responsible for opening the Strait of Hormuz, a crucial oil shipping passage that Iran has effectively closed off following the recent attacks by Israel and the US.

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"Go to the Strait and just take it, protect it, use it for yourselves," Trump exhorted his NATO allies in his presidential address this week.

"They must grab it and cherish it. They could do it so easily. We will be helpful, but they should take the lead in protecting the oil that they so depend on."

He also previously said "the hard part" had been done, though Iran still has the capacity to strike neighbouring Gulf states and shipping remains bottlenecked and blocked.

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In response, Macron, who is on a presidential tour boosting relations in eastern Asia, said that using force to open the strait was "unrealistic".

He also appeared to rebuke Trump's inconsistencies on Iran, saying, "When we want to be serious, we don't say the opposite of what we said the day before".

Trump is known to be angry at European allies for not joining the US's attack on Iran, although the US did not discuss the campaign with any of them.

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Some nations, including Spain and Italy, have refused to allow their air bases to be used by US aircraft involved in the war.

France has sent troops to the Middle East, but as a defensive gesture to help protect allies there.

Brigitte Macron dragged into fray

While in South Korea, Macron was also asked about comments Trump had reportedly made during a speech at a private event yesterday.

"I called up France, Macron, whose wife treats him extremely badly, (he is) still recovering from the right to the jaw," Trump said.

He was likely referring to a video from last year which appeared to show Brigitte Macron shoving her husband in the face while disembarking a plane.

President Macron later said the couple had been joking.

Asked about Trump's new comments, Macron said they "weren't elegant, and they weren't up to par" but otherwise dismissed them as unworthy of attention.

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