Economists are concerned about the flow-on effect war in Israel may have on world oil supply and petrol prices.

Dr. Shane Oliver, Head of Investment Strategy and Economics and Chief Economist at AMP says the impact could be severe, potentially adding 15 cents a litre to petrol prices.

“There’s certainly a danger there, that’s why whenever there’s a conflict in Israel or around Israel, share markets and oil markets get very nervous,” he told Neil Mitchell.

Press PLAY to listen to his analysis of potential impacts on petrol prices