Hundreds of stranded Australians are trying to escape the conflict zone as Israel and Iran trade strikes, prompting leaders to call for calm.
The rival nations began tit-for-tat missile and air strikes on Friday after the Israeli military launched attacks with the stated aim of wiping out Iran’s nuclear and ballistic missile programs.
Iran vowed to “open the gates of hell” in retaliation, while Israel has also hit critical oil refineries.
Foreign Minister Penny Wong said 350 Australians had registered for help getting out of Iran, while 300 had asked for aid in Israel.
“We are currently in the process of planning for assisted departures in the event that it is safe to do so,” she said on Monday.
“The timeline is primarily dictated by safety, and as long as governments have closed down airspace because of the risk to civilian aircraft, obviously no one can fly – and we certainly can’t fly.”
Senator Wong said the government was considering all options, including the use of Australian Defence Force or private charter planes.
Among those trapped in Israel are a delegation hosted by the Australian/Israel and Jewish Affairs Council that includes Olympian and former senator Nova Peris.
The military strikes were also discussed between Prime Minister Anthony Albanese and his Canadian counterpart Mark Carney ahead of the G7 summit in Canada.
Mr Albanese has called for a de-escalation of the conflict amid fears it could spread into a wider war.
“Both of us share a view wanting to see a de-escalation of conflict, wanting to prioritise dialogue and diplomacy,” he told reporters in Calgary.
“I have expressed before our concern about Iran gaining the capacity of nuclear weapons as something that is a threat to security in the region.
“But we, along with other like-minded countries, do want to see that priority on dialogue and diplomacy.”
Iran’s health ministry reported that hundreds of people had been killed in the attacks since Friday, including many civilians.
More than a dozen Israelis have been reported killed in retaliatory strikes.
Defence Minister Richard Marles said the conflict would have a number of knock-on effects for the economy, including increasing petrol prices.
“We saw this with the war in Ukraine, that does disrupt global supply chains and that has an economic impact around the world,” he told ABC TV on Monday.
Experts have warned that Iran’s threat to close the Strait of Hormuz – the only maritime entry point into the Persian Gulf – would also send oil prices soaring.
Mr Marles added Australian diplomatic staff in Iran and Israel had all been accounted for, as had military personnel in the region.
He reiterated safety warnings to Australians in the Middle East, with the situation remaining volatile.
NRMA spokesman Peter Khoury said drivers would most likely have to pay more for petrol as a result of the conflict but tipped prices to settle in the longer-term.
“It’s inevitable every time the Middle East flares up you see an immediate reaction from oil prices before they stabilise again,” he told AAP.
“What we saw over the weekend, where one of the Iranian refineries was also targeted, adds another layer of complexity.”
While Australia imports most of its oil from Asia, Mr Khoury said events in the Middle East had a bearing on the market.
“If the Middle East sneezes when it comes to the price of oil per barrel, the rest of the world catches a cold,” he said.
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