Conflict in the Middle East caused a sharp, immediate increase in fuel prices in 2026, with some countries experiencing a jump of up to 60 per cent. This has led to ripple effects and unpredictable economic conditions around the world, and Australia is no exception.
Fluctuating prices and uncertainty have an impact on all areas of a business. This includes HR, as individuals look to their employers for stability and guidance.
If you’re in human resources or management at a company with visa holders and international talent recruitment programs, here are some steps you can take to manage costs and tips to help you support and reassure individuals affected by global unrest.
Adapt to the disrupted landscape
Rising fuel costs and military action are putting pressure on the airline industry through cancelled and reduced flights, higher ticket prices and less stable flight schedules. Some flights are being diverted while others have risen due to jet fuel prices rising from $85-$90 to $150-$200 per barrel.
The cost of fuel for cars has increased as well, with diesel in Australia spiking beyond $3 per litre in April and little certainty around prices coming back to pre-2026 levels. This flows through the entire economy, increasing the price of food and other goods.
In Australia, employees who relocated for roles, including those on employer-sponsored visas, may be facing higher commuting costs and general cost-of-living pressures which affect how their compensation package feels in practice. Managers and HR representatives may find themselves facing work from home or pay raise requests as a way for employees to manage costs.
Now is a good time to update work from home policies or introduce a temporary fuel allowance to accommodate the change in travel costs.
Business travel also needs to be managed carefully when prices increase. Booking flights early and exploring different routes and airlines can help to reduce costs. It also makes sense to allow for delays and schedule changes. At management level, there may need to be more vigilance around approving travel arrangements and itineraries.
Supporting incoming and existing international talent
Financial relocation support which was appropriate twelve months ago may no longer reflect the actual cost of moving to Australia or living here once arrived. You and your finance team may need to review whether relocation allowances still cover actual costs, what housing assistance looks like and how distance from work may impact travel costs.
If you’re in the process of hiring from overseas, some immigration and mobility processes require in-person attendance, medical examinations, biometrics or travel to specific locations. Audit where your pipeline has these dependencies and identify cases which could be disrupted by reduced travel availability and costs so you can ensure they are covered appropriately.
Sponsored visa holders are typically subject to conditions tying them to their employer, a particular occupation or a specific work location. If economic conditions lead to the need for changes in role, hours, or work arrangements, now is a good time to review whether those changes affect visa conditions before they are implemented, not after.
Communicating with affected employees
Visa holders often feel heightened vulnerability when economic or political conditions shift as losing their job may mean having no choice but to leave the country. Proactive communication is one of the most effective ways to reduce that anxiety.
You don’t have to have all the answers, but be specific about what you know and don’t know. Where there are things you can confirm, for example, that their role is secure, their visa sponsorship will continue, and your business remains committed to supporting them, say so clearly.
The only certainty is uncertainty
Forecasting and flexibility are key in volatile times. However, there are many industries where demand for skilled workers is high, and international talent remains an important part of the solution.
Aim for business as usual, but keep a close eye on your business budget and be prepared to adapt as situations evolve.
