Westpac Chief Executive Anthony Miller has warned that escalating conflict in the Middle East heightens the risk of an economic recession in Australia, adding that it remains unclear how long disruptions to supply chains caused by the Iran war will take to ripple through the broader economy.

In an interview with the Australian Broadcasting Corporation, Miller stated, "The situation has changed dramatically, and the likelihood of a recession is significant."

"The key question is how long the conflict will last, but even more critical is how quickly supply chain issues can be resolved," Miller noted in an ABC podcast released on Friday.