Australia business conditions steady in June; mood improves

SYDNEY, July 14 (Reuters) - Australian ‌business conditions ​were ​steady in June as cost pressures eased following a U.S.-Iran peace deal to end their conflict, a survey ‌showed on Tuesday, although renewed hostilities have since sent ⁠oil prices higher again.

The survey from National Australia Bank showed its index of ‌business conditions was steady ‌at +3 in June for a third straight month. Confidence also improved to -5, from a deeply pessimistic -14 in May.

That was attributable ​to positive news from the Middle East after the U.S. and Iran signed an agreement to end a multi-month war ⁠that unleashed a global energy shock. Product price growth eased back to its February ​level in June and retail prices declined for the first time in seven years, the survey showed.

"In a ​broader macro sense, the business survey ‌results remain consistent with a slowing in activity growth through H1 2026, but also show that ⁠the impact of the Middle East conflict has been less severe in terms of both activity and price pressures than had been feared," ⁠NAB said.

However, tensions flared up again in the Gulf this week. The U.S. ​renewed military strikes on Iran and reinstated its blockade of shipping via the Strait of Hormuz. Brent crude prices rose 2% to $85 a barrel, the ‌highest point since mid-June, having jumped nearly 10% overnight.

The Reserve Bank of Australia has raised interest ‌rates three times this year to 4.35% to beat back the ⁠global energy shock. It ‌last held policy steady ​in June, but warned further policy tightening could not be ruled out.

(Reporting by Stella Qiu; Editing by ‌Thomas Derpinghaus)

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