US-Iran war live updates: National Cabinet discussing fuel crisis as Tehran warns Donald Trump over invasion

The Opposition Leader has repeated his calls for a reduction in the petrol excise as the Prime Minister again meets with state leaders this morning to discuss the fuel crisis.

Angus Taylor has outlined four key priorities for the government, including moving fuel to where it’s needed, slashing the petrol excise, improving transparency of where fuel is in the supply chain and explaining what comes next in the crisis.

Mr Taylor says the government must embrace his $1.5 billion excise proposal, but has dodged questions about whether he supports Donald Trump’s war in the Middle East.

Diesel prices in Sydney have climbed as high as $3.39 per litre, with one service station on the Northern Beaches among the most expensive in the city.

The Metro Petroleum outlet at Palm Beach was advertising diesel at $3.39 today, well above the Sydney average of $3.06 per litre, according to the NSW Fuel Check app.

Prices are climbing even higher in some regional and rural areas, where diesel is edging towards $3.50 per litre, adding further pressure on households and businesses already grappling with rising fuel costs.

Supply constraints are also emerging, with 229 service stations across NSW reported to be out of diesel yesterday as demand increases.

Buyers shunned real estate auctions at the weekend as worries about soaring borrowing costs, rising energy prices, and the Middle East war dented confidence.

Auction clearance rates in Sydney reached just 55 per cent on the weekend, versus a March average of 67 per cent. In Melbourne, they hit 59 per cent, versus a March average of 65 per cent, according to data provider Domain.

“Looks headed for price falls,” AMP chief economist Shane Oliver said on the weekend.

“Clearances are continuing to fall with more rate hikes likely and the war depressing buyer confidence and pushing up listings. Withdrawals are also up.”

Interest rate traders still expect the Reserve Bank to raise interest rates 72 basis points in 2026 to take the cash rate from 4.1 per cent to nearly 4.85 per cent in a bid to battle inflation, which Westpac Bank forecasts will reach 5.5 per cent in the second quarter of 2026.

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Treasurer Jim Chalmers says the May budget will still deliver significant reform despite mounting pressure from a global oil supply crunch driven by escalating conflict in the Middle East.

Following reports that the Pentagon is preparing for potential weeks of ground operations in Iran, Dr Chalmers said the Government remained focused on balancing immediate cost-of-living pressures with longer-term economic priorities. He also praised Victoria and Tasmania for introducing free public transport as petrol prices surge and some service stations run dry.

“The budget will be about helping deal with the pressures of the here and now and balancing that against our intergenerational obligations and demands imposed on us by the future,” he said.

“I am still looking to deliver an ambitious budget but it will be a budget which recognises the pressures that people are facing right now as a consequence of this war in the Middle East.

“There will still be reform in this budget. The budget will be about resilience and reform.”

“I wanted to commend Premier (Jacinta) Allan and the Tasmanian government for the steps they have taken on public transport,” he said.

“The Victorian and Tasmanian governments have indicated a willingness to do their bit when it comes to public transport.”

Iran has launched a volunteer recruitment campaign aimed at strengthening its domestic war effort, encouraging citizens to sign up for a range of security and support roles as the conflict continues.

According to CNN, media outlets linked to Iran’s security establishment are promoting the initiative, with one source, Defa Press, reporting that individuals aged 12 and older are eligible to register.

Roles outlined in the campaign include participation in intelligence patrols, operational patrols and checkpoint duties, indicating some volunteers may assist with monitoring and local security activities.

It has been reported by the Israeli Defence Force that multiple sites in Tehran have been struck over the past 24 hours.

Over 150 fighter jets have used over 120 munitions in the strikes that have targeted infrastructure, including sites used by Iran to research and develop ballistic missile systems and military research and production sites.

A national dashboard for fuel prices and outages, free nationwide public transport and a coordinated approach to curbing demand are among the issues a crisis meeting of leaders is being urged to consider.

National Cabinet will meet on Monday to discuss the Middle East fuel crunch for a second time.

State and territory leaders and business groups have called for a national approach to plot a path through the crisis as petrol prices surge and hundreds of service stations run dry.

Australia’s fuel stocks remain at normal levels, but fears of future shortages and price spikes caused by the ongoing blockage of the Strait of Hormuz have spurred users to bulk-buy petrol and diesel, leading to localised shortfalls.

Queensland Premier David Crisafulli accused the federal government of withholding information from the Australian people.

“I won’t stand for Australians not getting the information they need,” he said in a speech on Sunday.

“We’re asking Canberra to release information about prices and outages at a specific time each day, for every state and territory: a national dashboard.”

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A senior Iranian security official has signalled Tehran is prepared for a prolonged conflict, rejecting US suggestions the war could end within weeks and indicating offensive operations could continue for an extended period.

Speaking to CNN, the official said earlier US estimates that the conflict would last only days had already proven incorrect, and dismissed claims by US Secretary of State Marco Rubio that fighting could wrap up within weeks as unrealistic.

“This is our war, and we will not stop defending until we teach (US President Donald) Trump and (Israeli Prime Minister Benjamin) Netanyahu a historic lesson,” the official said, adding Iran’s missile and drone arsenal was capable of supporting sustained operations.