Australia faces same issues that flipped control of US Congress in midterms, experts say

Democrats’ victory in the US midterm elections, which shifted control of Congress, has weakened Donald Trump’s position and may reshape US policy. Analysts say the result also holds lessons for Australia: voter concerns about living costs and fuel prices could put pressure on Anthony Albanese’s government, while changes in Washington may affect the Aukus alliance, datacentre plans and relations with China.

The article links economic unease in both countries to the Iran war and its effects on prices. Brent crude fell by 20% after the election results, and Westpac economist Elliot Clarke said greater confidence in a Middle East resolution could ease inflation and reduce pressure for interest-rate rises. Former ambassador Arthur Sinodinos urged Australia to work with both US parties and prepare for uncertainty in foreign policy, including possible congressional pressure to support Ukraine.