Australians could be spending hundreds more a month due to the war in Iran, as Treasurer Jim Chalmers warned already-high inflation may climb towards five per cent. 

Chalmers is factoring in increasing oil prices into the May federal budget and said current estimates have the current 3.8 per cent inflation rate surging even further past the two to three per cent target.

"We've run a couple of scenarios which make it clear on some realistic assumptions about global oil prices and how that would potentially flow through to inflation and for how long," he told Sky News.

READ MORE: Trump issues cry for help to other nations to keep oil flowing

"If we were putting pencils down on those forecasts today, we'd have inflation peaking somewhere between the mid to high fours."

Chalmers, however, brushed off expectations of a recession, and laid out plans for the upcoming budget.

"The budget will be focused on the inflation challenge, the productivity challenge and economic global uncertainty," he said.

"At least two of those three have been dialled up quite considerably in the last fortnight." 

The federal and state governments have called emergency roundtables to discuss how the increased price of fuel could cause flow-on effects from retailers and distributors to consumers.

"Shipping companies are rightfully nervous at the moment, and as long as they're nervous, the markets are nervous, people are buying fuel and at an increased rate," Nine political editor Charles Croucher told Today.

"It all serves to push up prices even further beyond all that."

The global conflict will form part of the discussion when the Reserve Bank meets next week to set the interest rates.

All four of the big banks have tipped that there will be another rate increase. 

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Croucher said this could leave the average person paying an estimated $220 more a month on rising home loans, fuel and groceries. 

The war in Iran has entered its third week, cutting off the Strait of Hormuz that typically allows one-fifth of the world's oil supply to pass through to markets.

US President Donald Trump has declared he has "beaten and decimated" Iran in the same breath he called for other countries to help secure the Strait of Hormuz.

He said the conflict should be over soon, but warned that it could continue longer if necessary.

The International Energy Agency has agreed to the largest release of 400 million barrels of oil from its emergency reserves in history due to the supply disruptions on the Strait of Hormuz.

Australia, which imports 90 per cent of its oil, has also released 20 per cent of its petrol and diesel reserves to help areas experiencing low supply.

Energy Minister Chris Bowen this week confirmed the country has 1.6 billion litres of petrol, 2.7 billion litres of diesel and 800 million litres of jet fuel available – translating to 37 days' worth of petrol, 30 days of diesel and 29 days of jet fuel.

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US President Donald Trump has called on several other countries to send ships to the Middle East to open the Strait of Hormuz and ease the global oil supply disruptions brought on by his war in Iran.

The Strait of Hormuz is a critical but narrow waterway in the Gulf region through which ships carrying one-fifth of the world's oil supply pass. It has all but shut due to the war in Iran.

Trump today declared he has "beaten and completely decimated Iran, both militarily, economically, and in every other way", but in the same breath asked countries to help secure the 39-kilometre-wide passage. 

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"We have already destroyed 100 per cent of Iran's military capability, but it's easy for them to send a drone or two, drop a mine, or deliver a close-range missile somewhere along, or in, this waterway, no matter how badly defeated they are," he said in a Truth Social post.

"Hopefully China, France, Japan, South Korea, the UK, and others, that are affected by this artificial constraint, will send ships to the area so that the Hormuz Strait will no longer be a threat by a nation that has been totally decapitated.

"In the meantime, the United States will be bombing the hell out of the shoreline, and continually shooting Iranian Boats and Ships out of the water. One way or the other, we will soon get the Hormuz Strait OPEN, SAFE, and FREE!"

The US will be coordinating with affected countries to reopen the Strait of Hormuz. 

READ MORE: Iran directly threatens neighbouring country for first time in three week war

It comes just a day after the US bombed Kharg Island – Iran's coral outcrop that produces 90 per cent of the country's oil supply, or 950 million barrels, each year.

Trump said he has only struck military targets and left oil infrastructure unharmed, but warned that he will "immediately reconsider" if ships are not allowed to pass safely through the Strait of Hormuz.

In response to the call to help, the UK Defence Ministry said: "We are currently discussing with our allies and partners a range of options to ensure the security of shipping in the region."

France is also trying to secure the Strait of Hormuz, but Defence Minister Catherine Vautrin told France24 that "there is no question of sending any vessels" to the area.

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The Strait of Hormuz carries oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran to markets in Asia, including Iran's main customer, China.

While there are limited options for Saudi Arabia and the United Arab Emirates to avoid the passage, most have no alternate route.

The Islamic regime has vowed to block the region's oil exports, saying it would not allow "even a single litre" to be shipped to its enemies.

The Strait of Hormuz's closure has disrupted oil supply across the world, causing prices to surge to $US100 per barrel.

Fuel prices are feared to only increase, with prices at the pump exceeding $2 across Australia.

The International Energy Agency has agreed to the largest release of 400 million barrels of oil from its emergency reserves in history due to the supply disruptions on the Strait of Hormuz.

READ MORE: Will the pumps run dry? How the war in Iran is impacting Australia's oil supply

Australia, which imports 90 per cent of its oil, has also released 20 per cent of its petrol and diesel stock to help areas experiencing low supply.

Energy Minister Chris Bowen this week confirmed the country has 1.6 billion litres of petrol, 2.7 billion litres of diesel and 800 million litres of jet fuel available – translating to 37 days' worth of petrol, 30 days of diesel and 29 days of jet fuel.

Political scientist Simon Jackson said Australia is at the end of the fuel supply chain and suggested there could be more pain.

"The game theory element of this is Iran could be holding back, digging in for protracted conflict, because the longer that they can make this thing go, the more pain comes onto the West through what's happening," he told Today. 

– With Associated Press

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The roads may be filled with hybrid cars and weary travellers avoiding the skies this Easter as global oil disruption sends petrol and jet fuel prices soaring.

The Easter long weekend is now just three weeks away and as the conflict in the Middle East rages on, the humble April road trip could look a little different this year.

Petrol at the bowser is now over $2.20 per litre for E10 and over $2.60 for diesel.

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Petrol was, on average, just below $1.85 per litre in April last year.

Jet fuel prices are driving up domestic airfares in Australia across multiple routes too.

The most affordable return economy flights on the busiest route of Sydney to Melbourne during the peak Easter period are around $400-$500 on Qantas, Jetstar and Virgin.

East Coast Car Rentals chief marketing officer Ben Whitmore said these prices may push many Aussie travellers to stick to the roads for the Easter break.

"A lot of people have pre-booked their Easter travel and flights. If they have, they're lucky," he said.

"If they're not, they probably will be paying a premium.

"The demand [for cars] is still coming in pretty fast. It may come in even faster if people are opting for that self-drive holiday rather than flying,"

But if you're taking to the roads, Whitmore said a tank of fuel is still likely to be around $25 more expensive than it was before the war began.

If you fill up twice, that's an extra $50 tacked onto the price of your holiday.

"Diesel seems to be affected the most, which for our industry and rental cars, we don't have a great deal of diesels on fleet," he added.

"Where it will probably count the most is in some of the regional areas.

"If people are having Easter road trips out to more regional areas, I think the prices will be higher."

Some regional tourism operators fear the shortage crisis will result in lost revenue over the busy Easter period.

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Business NSW chief executive Daniel Hunter said bowsers running dry in rural areas has spooked travellers into cancelling.

"A regional tourist park operator told us they are starting to see cancellations and hesitation from visitors worried they will not be able to refuel," Hunter said.

"That is lost revenue for regional communities that depend on tourism. It's important that our holiday plans continue to sustain our visitor economies, particularly in the lead up to the Easter long weekend."

Hybrid cars could be the key to avoiding the sting at the bowser.

Sales of hybrid vehicles jumped to nearly 200,000 cars in 2025.

Whitmore predicts some savvy travellers will book rental cars which are either EV or hybrid models as Easter approaches.

"If it were me, where possible, I'd probably be looking for a hybrid at the moment," Whitmore added.

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A grieving mother has spoken for the first time since her son died at a train station in Melbourne's outer north-east.

Thousands of people stood in silence at a vigil last night to honour 22-year-old Aidan Becker, who was allegedly murdered by four teenagers as he tried to help a younger boy who was allegedly being robbed at Mernda Station on Friday, March 6.

His mother Natalie Becker addressed the crowd through tears with the support of his father and sister.

READ MORE: Will the pumps run dry? How the war in Iran is impacting Australia's oil supply

"I know that my beautiful boy would have done it all again in a heartbeat because that's the boy he was," Mrs Becker said.

She also shared a moment of gratitude for the strangers who showed the same courage as her son.

"I thank you for trying. I thank you Anthony for telling my boy his family loved him because those would have been the last words he heard," she said.

READ MORE: Iran war will end 'when I feel it in my bones', says Trump

A tribute is growing at the spot where the hospital security guard took his last breath.

Dozens of flowers, candles and messages from strangers who never knew him but won't forget what he did. 

"The number of people gathered here is a powerful reflection of just how many lives Aidan has touched," local Farrell Paton said.

"Rest in peace Aidan, a real hero."

The Becker family say they have been overwhelmed with their community's outpouring of love.

More than $100,000 has been raised through an online fundraiser.

"The only reason we're here and not curled up in a ball somewhere is because of each and everyone one of you," Mrs Becker said.

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US President Donald Trump has said the war with Iran will end "when I feel it in my bones".

Trump was asked on The Brian Kilmeade Show about the timeline of the war, which he previously described as a "brief excursion".

"When it's over –– and I don't think it's going to be long –– when it's over, this is going to bounce back so fast," the president said.

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The oblique response comes as America scaled up its attacks in Iran and signalled a further escalation.

On Wednesday he said there was "nothing left" to bomb in Iran.

But this morning he announced "one of the most powerful bombing raids in the history of the Middle East".

Trump said he had destroyed every military target on what he described as "Iran's crown jewel" – Kharg Island.

Meanwhile, thousands of ground troops are being deployed by the US military to the Middle East, according to reports.

The Wall Street Journal reports the Pentagon has approved moving an additional 5000 Marines and sailors into the region.

The request for more troops was made by US Central Command and approved by Secretary of Defence Pete Hegseth.

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The troops of the 31st Marine Expeditionary Unit are attached to the USS Tripoli, an amphibious assault ship usually based in Japan.

Neither the Pentagon or the White House have confirmed whether the transfer of the ship to the region is coming ahead of a ground invasion of Iran.

But in order for the US to have substantial numbers of troops on the ground from an amphibious invasion, they would need a vessel like this.

The 31st Marine Expeditionary Unit specialises in amphibious invasions.

Already there are 50,000 US troops in the region, but Donald Trump has demurred on whether he will order a ground invasion of Iran.

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But the Trump administration continues to tout their successes in the war.

"With each passing hour—we know, and we know that they know—that the military capabilities of their Evil Regime are crumbling," Hegseth said today.

"They can barely communicate, let alone coordinate. They are confused; we know it.

"Our response: we will keep pressing. Keep pushing. Keep advancing. No quarter. And no mercy for our enemies."

Overnight US Central Command confirmed that all crew aboard a refuelling aircraft had died after a crash.

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The KC-135 crashed in western Iraq.

"The circumstances of the incident are under investigation," a statement read.

"However, the loss of the aircraft was not due to hostile fire or friendly fire."

It takes the US death toll from the war to 13.

Strikes continued overnight, with Iran targeting oil infrastructure in the Gulf region.

Iran has appeared to have struck Bahrain, Oman, Dubai and Turkey overnight.

Meanwhile in Iran, a large explosion was reported during a mass gathering to mark Quds Day, an event held in support of Palestine.

While Trump has been active on social media in the past few hours, he has made little mention of Iran.

Instead he has posted twice about renovations to his renamed Trump-Kennedy Centre.

He also posted on Truth Social an attack on New York Times reporter Maggie Haberman, who he called Maggot Hagerman.

READ MORE: Trump weighs in on rumours Iran has put a dead man in charge

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The government has been assuring Australians that the country is not going to run out of petrol in spite of the crisis in the Middle East.

Today Energy Minister Chris Bowen said fuel reserves were "steady compared to last week".

"Australia continues to receive expected fuel imports," he said.

"But we've seen unacceptable shortages in some rural and regional areas — and the Government has acted."

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But as some drivers are turned away from service stations and prices go through the roof, there's plenty of cause for concern.

Independent economist Saul Eslake told nine.com.au Australia probably won't run out of petrol.

But the circumstances are different from the Gulf Wars or the Russian invasion of Ukraine, which also caused prices to spike.

"I don't think it will. But the probability is not zero," he said.

"It's higher than it was in 2022, in 2004 and 1991."

Most of Australia's fuel comes into the country already refined, practically none of it directly from the Persian Gulf region.

South Korea sold us $12.75 billion of petrol (including diesel). Another $8.5 billion came from Singapore.

More refined petroleum came from Malaysia, India, Taiwan, China, Brunei and Japan. Only a few hundred million dollars worth came from the United Arab Emirates (UAE), and even less from Oman.

But where those refiners get their oil from might worry Australians looking to fill up.

READ MORE: Supermarket pain for shoppers as inflation nears record high

Most of the oil South Korea refines for sale to Australia comes from the Middle East.

That includes Saudi Arabia, Iraq, the UAE, Kuwait, Qatar and Oman.

More than a third of Singapore's oil is sourced from Arab nations.

In 2024, Australia imported $7 billion of crude oil.

But very little of that is coming from the Strait of Hormuz.

The largest chunk of oil comes from Malaysia, based on 2024 data. More comes from Vietnam, Brunei and the United States.

Only six per cent comes from the UAE. No other Arab states sold oil directly to Australia that year.

Australia also exports almost as much crude oil as it imports.

AMP economist My Bui said she wasn't too worried about Australia running out of petrol.

"We export a lot of crude oil, and we have to import a lot of our refined petrol from Asia," she said.

"But in terms of energy, we are actually a net energy exporter because of LNG and coal."

Eslake flagged another potential concern for Australia's fuel supply.

A large proportion of Australia's strategic reserve isn't kept domestically, but in the United States.

"If that reserve is needed by the United States, they'll take it," Eslake said.

"One of the other hallmarks of the Trump administration is that they don't give a rat's ass about their traditional allies."

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Simply halting those exports to guarantee local supply wouldn't necessarily solve the problem.

Australia exports its crude oil and imports refined oil because it's cheaper to do so.

Australia does not have the capacity to refine all the oil it needs into diesel and petrol. Upping our refining capacity would lead to even higher prices at the pumps.

But having enough petrol in the country won't necessarily mean prices will go down.

Because of the global market, a barrel of oil in the Middle East will sell for the same price as one in Australia.

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A Melbourne man is in intensive care after a brawl broke out at a pizza shop in front of shocked diners.

The business only opened on Tuesday but the owner claims he's received threats since he began renovations last month.

Daje Pizza restaurant owner Andrea Caroli and his friend say they were forced to defend themselves when three men stormed the store on Sydney Road in Brunswick last night.

READ MORE: Will the pumps run dry? How the war in Iran is impacting Australia's oil supply

Customers ran out of the shop as punches were thrown and chairs, a crowbar and a fire extinguisher were also used in the brawl, which was captured on CCTV. 

"Came into the shop, three of them, three big guys, they started punching and kicking, they damaged the shop as well," Caroli said.

Caroli suffered a black eye but his friend copped the brunt of the attack.

He is in ICU at the Royal Melbourne Hospital in a stable condition with head injuries.

"His eye was like this," Caroli said, gesturing a swollen eye.

READ MORE: Iran war will end 'when I feel it in my bones', says Trump

"I've never seen anything like that and his mouth, blood everywhere, he vomited a few times."

Caroli claims a rival pizza shop owner is behind the attack after receiving threats while renovating last month.

"All this because we are competition, they're scared that they're going to lose their business," he said.

Despite being injured and the clean-up ahead, Caroli is already back in the kitchen getting ready to serve customers tonight.

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Celebrity competitors like JManGo, Piri Weepu and Peter Gordon thrilled fans.

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