02-05-2026: Even prior to the start of the imperialist war on Iran, the cost of living for working people in the West was over the top. Now, with the US war of aggression failing on every front, the resultant cost of living spikes are becoming too much to bear. The Islamic Republic of Iran is more than holding its own despite the unprovoked attack by the former world hegemon, aided by its Israeli sidekick. Iran has destroyed almost all US military bases that surrounded it, it has inflicted heavy damage on Israel, and it retains control of the Strait of Hormuz. Washington has no military options to open the strait – perhaps short of nuclear war. The disruption to oil and fertiliser supplies to Western economies have caused fuel prices to skyrocket, with a potential flow on to the prices of food and other basic goods. Even the mainstream 60 Minutes aired an episode titled “Starving to Pay Rent”, which interviewed a couple whose rent had increased to $920 per week, and a sheep farmer whose property needs diesel fuel to operate.[1]

Unaffordable housing

While petrol prices have stabilised or temporarily decreased in Australia due to government action to halve the fuel excise, there is no guarantee this will last. Australia is still overwhelmingly dependent on buying fuel on the market internationally, after the neoliberal closing down of all but two of its refineries. Meanwhile, housing for many workers is near unaffordable. In cities such as Sydney, rental prices have actually stopped increasing as renters reach the limit of what is possible to pay. To rent a modest unit, average charges are $750 per week in Sydney, $660 in Brisbane, $600 in Melbourne and $695 in Perth. The average cost to rent a run of the mill house is between $800 to $900 per week.[2] Buying a house to live in is impossible for many young people, and many older people who have full time employment. Sydney is the world’s second most unaffordable city, with its median house purchase price at $1.75 million or 13.8 times the median household income. Median house prices in other capital cities vary but are topping 1 million dollars.[3] This is pushing many onto the equally unaffordable rental market.

The cost of utilities continues to rise unabated. Electricity costs rose a staggering 37% in just the 12 months to February 2026. Home insurance premiums have risen by 51% in the last five years.[4] By any marker, these prices are unsustainable for all but a handful of wealthy elites. Yet it could get worse. Australia’s agricultural sector is based on diesel fuel and fertiliser. Without plentiful supply at a reasonable cost, farmers will not be able to get food and fibre to consumers. If the US ruling class – backed by Canberra – re-starts the war on Iran, or even continues to attempt to blockade Iran’s trade, the price of perishable goods such as dairy, fruit and vegetables could rise by between 40 to 50%.[5] What is more, a restarted and prolonged war of regime change on Iran could lead to economic depression (NOT a recession) on or exceeding the devastating scale of the Great Depression in the 1930s.

Demand an end to endless war

Previous imperialist wars on Iraq, Afghanistan, Libya and Syria – all arguably aimed at Iran – have not had a direct impact on the cost of living in the West. Yet now, the strategic Strait of Hormuz brings it all home. There is now a direct link to criminal wars of aggression in the Middle East and the real living standards of working people in the West. Despite this, the ruling classes of the West are very advanced in their planning for long wars against Iran, Russia and China. Imperialism is already in the process of waging a proxy war on Russia via Ukraine, and now the war on Iran has begun, while constant preparations for war on China continue. It is true that the cost-of-living disaster for working people in the West began prior to the current war on Iran. Indeed, the Covid reign of terror with its unjustifiable lockdowns deliberately shutting down parts of the economy jacked up already high prices. Prices have remained high ever since but have now been pushed even higher due to the desperate US war on Iran.

The desperation of this war is not due to the madness of Donald Trump, though arguably Trump now has less working faculties than his predecessor Joe Biden. Washington is desperate now because it is running out of time. In five years’ time, the socialistic People’s Republic of China (PRC) will be in a position where it will be unsurpassable in virtually all fields of endeavour – manufacturing, science, technology, infrastructure construction, telecommunications, quantum computing, AI, ship building, military hardware, electric vehicles, green energy and much more. This is why the US ruling class must now make a last ditch effort to save capitalist imperialism before it is swept away by the tides of history. This is especially the case due to the fact that the PRC has strong allies in the rising multipolar world and the Global South. Undoubtedly Iran and Russia join with China as the pillars of multipolarity – but they also have the backing of almost the entirety of the nations which experienced some form of Western colonisation.

The left needs to snap out of its torpor. Much of the Western left is in a state of paralysis due to its wailing over “authoritarianism” in Iran. This is an abject betrayal. The politics of the Iranian government is, at the very least, more anti-imperialist than they are. This system loyal “left” in the West needs to be bypassed, and genuine political forces – whether from the left or the “right” – who oppose a descent into World War III need to organise together. In such a movement there will be differing motivations and goals, but each should be able to agree that wars which directly impact on the dire cost of living need to be halted. Such a movement may well be multi-class, including farming and other businesses alongside workers struggling to make ends meet. Yet with strategic leadership, such a movement may hold together for long enough to at least win substantial concessions – such as permanent subsidies for food and essential services.

World War III is the West’s war on multipolarity. The promise of the rising multipolar world – equal rights and respected sovereignty for all states without exception – in practice means the end of imperialism. Therefore, the multipolar world contains the potential of the victory of socialism. Active Marxist leadership will be required to bring this about. Right now, workers need to fight against cost of living attacks via direct links with opposition to the wars on Iran, Russia and China. Victory to Iran! No war on Russia and China!

Workers League


www.redfireonline.com


E: workersleague@protonmail.com

---

[1] www.youtube.com/watch?v=HRP1t-P0Ljw (29-04-2026)

[2] www.pedestrian.tv/news/australia-rental-prices-2026-state-by-state-explainer/ (29-04-2026)

[3] www.fenro.com.au/house-prices-australia-2026/ (29-04-2026)

[4] www.themidland.com.au/tony-mantos/cost-of-living-australia-2026-guide/ (29-04-2026)

[5] www.canberratimes.com.au/story/9194449/double-whammy-food-prices-warning-over-war-fuel-shock/ (29-04-2026)

Image: Speedboats of the Iranian armed forces operate in the Persian Gulf. http://www.nytimes.com