How an Italian oil boom might reshape the Regia Marina

How might a 1920s Italian oil and iron boom have changed the Regia Marina?

Italy could modernize its battleships, cruisers, and destroyers, but treaty limits would constrain expansion unless it accepted an international building race.

A richer Italy could spend more readily on the Regia Marina, but money would not erase international treaty limits. Exceeding those ceilings could activate escalator provisions and provoke matching construction by other powers. The additional capacity would be best used to replace old battleships with modern vessels rather than simply enlarge the nominal fleet. Cruisers and destroyers would also be candidates for renewal, with any attempt to evade replacement rules carrying diplomatic consequences.