The ongoing Iran war is continuing to drive up the cost of living in Australia, with higher global oil prices affecting everyday household expenses.

ABC News reports that fuel costs have increased transport and supply chain expenses, leading to price rises for essential products such as milk, groceries and other daily necessities.

Australians are also paying more for commuting, morning coffee and other routine expenses as businesses pass on higher operating costs to consumers.

Economists warn that if the conflict continues and oil markets remain disrupted, inflationary pressures could intensify in the months ahead.

The report notes that Australia has avoided a full-scale oil crisis so far, but families are already feeling the impact through rising prices across their daily budgets.

Experts say the duration of the conflict and future oil supply conditions will determine whether Australians face even higher living costs later this year.