US-Iran war updates: Albanese forecasts economic strife amid fuel crisis, calls on Aussies to ‘do their bit’

Wall Street surged overnight on expectations that the US will end its war on Iran within weeks, even if the Strait of Hormuz remains largely closed.

Australian share futures point to a 1.3 per cent jump at the opening bell, as the market seeks to avoid its fifth straight week of losses after Wall Street’s tech-heavy Nasdaq Index rocketed 3.8 per cent and the S&P/500 jumped 2.9 per cent on Tuesday.

“US equity markets soared overnight, with tech stocks leading the charge,” said IG Markets. “The rally was fuelled by fresh signs of de-escalation in the Iran conflict and cooler labour market data, which confirmed this week’s flip in the rates market back toward pricing in Federal Reserve rate cuts in 2026.”

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Donald Trump has suggested the US could wind down its war with Iran within weeks, signalling other nations may be left to secure the Strait of Hormuz.

Speaking from the White House, Mr Trump said he expected a deal with Iran to be reached soon, indicating the conflict could be resolved within two to three weeks.

“It’s possible that we’ll have a deal because they want to make a deal. They want to make a deal more than I want to make a deal. But in a fairly short period of time, we’ll be finished,” he said.

Mr Trump said responsibility for reopening the Strait of Hormuz would likely fall to countries reliant on Middle Eastern energy supplies, suggesting the US may not take the lead in securing the vital waterway.

“If France or some other country wants to get oil or gas, you go up through the strait and - the Hormuz Strait - they’ll go right up there, and they’ll be able to fend for themselves,” he said.

“What happens in the Strait, we’re going to have nothing do with.”

Small businesses struggling with rising fuel costs linked to the Middle East conflict will be offered temporary tax relief, as Treasurer Jim Chalmers warned many operators are already “paying the price” of global supply disruptions.

Standing alongside industry leaders and Small Business Minister Anne Aly, Dr Chalmers announced a support package designed to ease immediate financial pressure, including more flexible ATO payment plans, potential waivers on interest and penalties, and assistance with PAYG instalments for businesses impacted by fuel volatility.

The Australian Taxation Office will also reduce compliance activity for the most affected sectors, pausing certain debt collection processes and introducing a dedicated channel for small businesses seeking relief.

Dr Chalmers said the government would also extend the small business responsible lending obligation exemption for another 10 years, helping businesses access finance without added delays or regulatory hurdles.

“Our objective here is to provide support and provide flexibility, the two most important things that we can help with at a really difficult time,” Dr Chalmers said.

The next few days in the Middle East conflict will be decisive, US Defence Secretary Pete Hegseth has told a briefing, saying there have been major desertions from the Iranian armed forces.

“We have more and more options, and they have less ... in only one month we set the terms, the upcoming days will be decisive,” Mr Hegseth said.

“Iran knows that, and there’s almost nothing they can militarily do about it.”

Hegseth, citing intelligence, said the strikes were damaging the morale of the Iranian military.

This, he said, was triggering widespread desertions, key personnel shortages and causing frustration amongst senior leaders.

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A female US journalist has been kidnapped in Baghdad, and authorities are searching the city for her, two police officials say.

The Iraqi interior ministry confirmed the abduction of a female journalist but did not disclose her citizenship.

The ministry said one suspect was arrested and efforts were ongoing to free the journalist.

Police officials who declined to be named later identified the victim as Shelly Kittleson.

Middle East news site Al-Monitor said Kittleson is a US freelance journalist based in Rome who has covered several wars in the region and contributed articles to the outlet.

A US State Department official said the United States is tracking reports of the kidnapping but declined to provide further details, citing privacy and other considerations.

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The Albanese government’s halving of fuel excise comes into effect today, but motorists are being warned that savings will take several days to flow through to the bowser.

Under the temporary tax change announced this week, excise is being reduced by 26.3 cents per litre, but many stations won’t have cheaper fuel until they replenish their stock.

When a similar excise cut took place in 2022, the consumer watchdog reported that savings lagged 1-2 weeks at busy metropolitan outlets, and a few weeks more at more regional locations.

Earlier this week, the Treasurer said motorists could expect to save around $19 on a 65-litre tank once the excise cut is applied.

US President Donald Trump has lashed out at allies reluctant to join the escalating war with Iran, telling them to “go get your own oil” as the conflict and closure of the Strait of Hormuz drive global fuel price fears.

In a fiery social media post, Mr Trump criticised partners including the United Kingdom and France for refusing to play a greater military role, writing: “You’ll have to start learning how to fight for yourself, the USA won’t be there to help you anymore, just like you weren’t there for us. Iran has been, essentially, decimated. The hard part is done. Go get your own oil!”