The conflict in the Middle East continues to rage on, and there's concerns about what it could mean for the Australian economy.

The US and Israel have struck more than 1200 Iranian targets, with plans to ramp up the bombardment in coming hours, and Iran has launched more strikes and choked oil tanker transit through the Strait of Hormuz.

Australian correspondent Murray Olds says RBA governor Michele Bullock says it's too early to know the impacts, but economists have warned this could see petrol prices rising by 40 cents a litre. 

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