Recent developments have intensified pressure on global logistics, particularly through the disruption to shipping routes, and ongoing volatility in oil and gas supply.
The conflict is now considered one of the largest energy shocks in recent years, with the effective closure of the Strait of Hormuz, through which around 20 per cent of global oil passes, triggering oil price increases and continued market volatility.
Attacks on energy infrastructure in Qatar have resulted in an estimated 17% of Qatar’s LNG production expected to be offline for five years.
For Queensland exporters, the most immediate impacts are being felt across freight and input costs. Sea freight into the region remains disrupted, with chilled and short shelf-life products such as meat and fresh produce most exposed.
A special message from the Queensland Minister for Finance, Trade, Employment and Training Ros Bates MP in response to the current conflict in the Middle East, and impact on Queensland exporters.
Air freight between Queensland and the Middle East has also been affected, with impacts on high-value and time-sensitive exports.
Rising fuel costs and supply uncertainty are also flowing through to the broader export sector. With Australia importing around 90% of its refined fuel, sustained disruption could increase costs across transport, production and distribution.
The Middle East produces an estimated 45% of the world’s fertilizer for agricultural use. Production disruption and increased agricultural production costs are likely to flow through to increased food prices and drive inflationary pressures
Despite these challenges, Queensland exporters are demonstrating resilience and adaptability. Many businesses are adjusting supply chains, reviewing market strategies and expanding into alternative destinations to manage risk and maintain growth.
The Middle East remains an important market for Queensland and for TIQ clients, representing around one sixth of the agency’s goods export outcomes in 2025 supported by strong demand across sectors including professional services, aerospace, defence and urban development.
At the same time, global conditions are reinforcing the importance of diversification. Queensland is well positioned to strengthen trade across a broader mix of stable and high-value markets, including Europe, North America and the Indo-Pacific.
Trade and Investment Queensland is actively supporting exporters through this period, providing market intelligence, connecting businesses with global opportunities, and delivering targeted advice to help navigate changing conditions.
Businesses are encouraged to engage with TIQ’s global network and advisory services to manage risk, identify new markets and continue growing internationally.