Oil prices are back above $US100 a barrel as uncertainty over the Strait of Hormuz rattles energy and bond markets. But with global inventories already depleted, how much worse could the situation get if a deal between the US and Iran remains out of reach?

Sean Aylmer speaks with Vivek Dhar, Head of Commodities and Sustainability Research at Commonwealth Bank, about the risk of Brent crude reaching $US150 a barrel, why diesel may be even more vulnerable, how protected Australia is from physical shortages, and why the current crisis could ultimately accelerate a shift towards structurally lower oil prices.