Prime Minister Anthony Albanese has expressed deep concern over the escalating Iran conflict, now in its third month, highlighting its severe economic impact on global markets. Speaking to the ABC, Albanese said he was 'very worried' about both the human cost and the economic consequences, which he warned would worsen if the situation continues.
The latest escalation follows US strikes on Iran, described by the US as a 'proportional response' to the downing of an American helicopter near the Strait of Hormuz. Iran's Foreign Minister Abbas Araghchi responded by stating that Iran's military would 'leave no attack or threat unanswered'. Subsequently, the Islamic Revolutionary Guard Corps claimed a drone attack on a US Navy base in Bahrain.
Albanese noted that US President Donald Trump's repeated announcements of peace deals have created uncertainty in financial markets, as statements often carry caveats about whether agreements will hold. 'That's creating a great degree of difficulty when economic markets respond to these new statements,' he said.
The Prime Minister reiterated Australia's call for a permanent ceasefire, emphasizing that the conflict's impacts are felt even in non-participating countries. He also addressed the possibility of extending fuel excise cuts, which are set to expire later this month, stating that no decision has been made yet.
Nationals leader Matt Canavan suggested keeping a 'watching brief' on fuel prices, noting that while the cuts have provided relief, they have also cost billions. He said excise relief should be considered if prices spike again.
