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The Reserve Bank of Australia warned on Thursday that the conflict in the Middle East could trigger serious international impacts, but if a significant economic downturn occurs, Australian domestic banks are well positioned to support the economy. In its semi-annual Financial Stability Review, the Reserve Bank of Australia listed a series of global vulnerabilities, including the potential collapse of financial markets, cyber attacks, and the spread of unconventional policies. This suggests that the risks of significant adverse impacts on the domestic economy in recent weeks have increased. The Reserve Bank of Australia stated, "The conflict in the Middle East could cause greater disruptions and unsettle the global economy, especially in the event of ongoing disruptions in the supply of oil and other commodities markets... Given the significant increase in leverage levels and concentration in key global asset markets in recent years in a low-risk premium environment, this increases the possibility of assets undergoing disorderly repricing in the event of further adverse developments." The Reserve Bank of Australia also stated that if productivity does not improve as expected, investments related to artificial intelligence could face significant selling risks.