The military is being called in to help Australians trying to leave Iran and Israel, after the US gave itself two weeks to decide on whether to join the conflict between the Middle Eastern nations.

Foreign Minister Penny Wong stressed the government was not sending in the Australian Defence Force in combat roles, but only to assist citizens and residents.

She said any Australians left in Iran should leave if they can after closing the Australian embassy in the capital, Tehran, and ordering all diplomatic staff to depart.

“We are sending defence assets to help Australians – they are not there for combat,” Senator Wong told reporters on Friday.

“I wish that we had more capacity to assist, but the difficult reality is, the situation on the ground is extremely unstable.”

The defence personnel and aircraft are part of contingency plans to help Australians leave if and when the now-closed airspace in Israel and Iran reopens.

Some Iranian consulate staff have been sent to the closest land crossing in Azerbaijan to help Australians still in the nation.

Those attempting to leave for a neighbouring state have been warned to consider the risks, as borders may close without notice and roads are exposed to attacks.

There are also different visa rules for many of the bordering nations including Armenia, Turkmenistan, Azerbaijan and Turkey.

Australians have been advised not to travel to Afghanistan, Iraq or parts of Pakistan that border Iran.

Iran and Israel have continued to trade strikes after the Israeli military began its attack a week ago in a bid to wipe out Iran’s nuclear program.

Overnight, US President Donald Trump, who has kept the world guessing about whether the US might join the war on Israel’s side, said he would make a decision within two weeks. 

He noted there was a “substantial chance” of negotiations with Iran.

Mr Trump has demanded Iran unconditionally surrender, saying he knew where Supreme Leader Ayatollah Ali Khamenei was hiding.

Iran has warned of “all-out war” if the US joins the fray.

Israeli strikes on Iran have killed at least 639 people and wounded 1300 others, according to a Washington-based Iranian human rights group.

Israel says Iran’s retaliatory strikes have killed at least 24 people and wounded hundreds.

The Australian government has repeatedly urged all parties involved to prioritise diplomacy and dialogue.

“Given what President Trump has said, there is an opportunity over the next two weeks for de-escalation, dialogue and diplomacy,” Senator Wong said.

“That is what we want to see and that is what the world wants to see.

“Iran must come to the table and it must stop any nuclear weapons program.”

More than 2000 Australians have registered for assistance to leave Iran, up from 1500 on Thursday.

The government has already helped Australians flee Israel using a border crossing to Jordan.

There are still more than 1200 Australians registered for assistance to depart Israel, where the airspace is also closed.

with Reuters

A former Liberal finance minister will represent the country’s banks after being appointed chief executive office of the Australian Banking Association.

After almost two decades in politics, Simon Birmingham announced his retirement from parliament at the end of 2024 for a role at banking giant ANZ.

On Friday, it was revealed he would shuffle jobs once again to lead the banking lobby group from August.

“I will always put trust in Australia’s banking system first, pursue a competitive regulatory environment, and work to ensure innovation in banking strengthens Australia’s financial interests,” Mr Birmingham said in a statement.

“A strong, healthy, customer-focused financial services sector is vital for all Australians.”

The association’s members include all of the big four banks and 16 other regional and international institutions.

Treasurer Jim Chalmers welcomed Mr Birmingham’s announcement.

“The Australian Banking Association is fortunate to be bringing in someone of Simon Birmingham’s calibre as its new CEO,” he said.

“I’m looking forward to engaging with him on the big issues shaping Australia’s banking sector.”

Senator Birmingham entered parliament in 2007 and served as trade, finance and education ministers in coalition governments under Malcolm Turnbull and Scott Morrison.

ABA Chair and National Australia Bank CEO Andrew Irvine said Mr Birmingham’s ability to navigate difficult and complex environments made him ideal for his new role.

“He will be a sensible, consistent and respected voice on behalf of the industry,” Mr Irvine said.

Share markets in Asia struggled for direction as fears of a potential US attack on Iran hung over markets, while oil prices were poised to rise for a third straight week on the escalating Israel-Iran conflict.

Overnight, Israel bombed nuclear targets in Iran, and Iran fired missiles and drones at Israel as a week-old air war intensified with no sign yet of an exit strategy from either side.

The White House said President Donald Trump will decide in the next two weeks whether the US will get involved in the Israel-Iran war. The US President is facing uproar from some of his MAGA base over a possible strike on Iran.

Brent fell 2 per cent on Friday to $77.22 per barrel, but is still headed for a strong weekly gain of 4 per cent, following a 12 per cent surge the previous week.

“The ‘two-week deadline’ is a tactic Trump has used in other key decisions, including those involving Russia and Ukraine, and tariffs,” said Tony Sycamore, analyst at IG.

“Often, these deadlines expire without concrete action, (similar to TACO), and there is certainly a risk of this happening again, given the complexities of the situation.”

Still, a cautious mood prevailed in markets with Nasdaq futures and S&P 500 futures both 0.3 per cent lower in Asia. US markets were closed for the Juneteenth holiday, offering little direction for Asia.

The MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 per cent but was set for a weekly drop of 1 per cent. Japan’s Nikkei slipped 0.2 per cent.

China’s blue chips rose 0.3 per cent, while Hong Kong’s Hang Seng gained 0.5 per cent, after the central bank held the benchmark lending rates steady as widely expected.

In the currency markets, the dollar was on the back foot again, slipping 0.2 per cent to 145.17 yen after data showed Japan’s core inflation hit a two-year high in May, which kept pressure on the Bank of Japan to resume interest rate hikes.

Investors, however, see little prospects of a rate hike from the BOJ until December this year, which is a little over 50 per cent priced in.

The US bond market, which was also closed on Thursday, started trading in Asian hours on a subdued note. Ten-year Treasury bond yield was flat at 4.389 per cent, while two-year yields slipped 2 basis points to 3.925 per cent.

Overnight, the Swiss National Bank cut rates to zero and did not rule out going negative, while the Bank of England held policy steady but saw the need for further easing and Norway’s central bank surprised everyone and cut rates for the first time since 2020.

Gold prices eased 0.2 per cent to $3,363 an ounce, but were set for a weekly loss of 2 per cent.

Oil prices were on track to rise for the third straight week, with investors on edge as the week-old war between Israel and Iran showed no signs of either side backing down.

Brent crude futures fell $1.57 cents, or 2 per cent, to $77.28 a barrel. On a weekly basis, it was up 3.9 per cent.

The US West Texas Intermediate crude for July – which did not settle on Thursday as it was a US holiday and expires on Friday – was up 86 cents, or 1.1 per cent, to $76. The more liquid WTI for August rose 0.7 per cent, or 50 cents to $74.

Prices jumped almost 3 per cent on Thursday as Israel bombed nuclear targets in Iran, and Iran fired missiles and drones at Israel after hitting an Israeli hospital overnight.

“Oil prices remain high due to doubled tanker rates and ships avoiding the Strait of Hormuz,” said Phil Flynn, analyst at The Price Futures Group.

“The risk to supply is keeping them on edge while there have been no major disruptions of Iranian exports,” Flynn said.

Iran is the third-largest producer among members of the Organisation of the Petroleum Exporting Countries, extracting about 3.3 million barrels per day (bpd)of crude oil.

About 18 million to 21 million bpd of oil and oil products move through the Strait of Hormuz along Iran’s southern coast, and there is widespread concern the fighting could disrupt trade flows in a blow to supplies.

There was no sign of an exit strategy from either side, as Israeli Prime Minister Benjamin Netanyahu said Tehran’s “tyrants” would pay the “full price” and Iran warned against a “third party” joining the attacks.

The White House said on Thursday that President Donald Trump will decide whether the US will get involved in the Israel-Iran conflict in the next two weeks.

“The “two-week deadline” is a tactic Trump has used in other key decisions. Often these deadlines expire without concrete action,.. which would see the crude oil price remain elevated and potentially build on recent gains,” said Tony Sycamore, analyst at IG.

Australia has closed its embassy in Tehran, as Iran and Israel continue to bomb each other and after President Donald Trump signalled the US could enter the conflict.

All foreign affairs staff and their dependents in the Iranian capital have been told to leave “based on advice about the deteriorating security environment”.

The Department of Foreign Affairs and Trade is deploying consular staff to Azerbaijan, including its border crossings, to support Australians departing Iran.

“We urge Australians who are able to leave Iran to do so now, if it is safe,” Foreign Minister Penny Wong said on Friday.

“Those who are unable to, or do not wish to leave, are advised to shelter in place.

“We are continuing planning to support Australians seeking to depart Iran, and we remain in close contact with other partner countries.”

Overnight Mr Trump, who has kept the world guessing about whether the US might join the war on Israel’s side, said he would make a decision within the next two weeks.

“Based on the fact that there’s a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks,” press secretary Karoline Leavitt told reporters in Washington, quoting a message from the president.

The conflict between Israel and Iran erupted a week ago, when the former launched an attack against the Islamic republic’s missile capabilities, claiming it was on the verge of developing nuclear weapons.

Israeli strikes on Iran have killed at least 639 people and wounded 1300 others, according to a Washington-based Iranian human rights group.

Israel says Iran’s retaliatory strikes have killed at least 24 and wounded hundreds more.

Mr Trump has demanded that Iran unconditionally surrender, saying he knew where Supreme Leader Ayatollah Ali Khamenei was hiding.

Iran has warned of “all-out war” if the US joins the fray.

There are now more than 2000 Australians who have registered for assistance to leave Iran, up from 1500 on Thursday.

“It’s a difficult, hard situation, the airspace is still closed,” Health Minister Mark Butler told Seven’s Sunrise program on Friday.

“We’ll be exploring every opportunity we can to support people getting out in other ways.”

The government has already helped Australians flee Israel using a border crossing to Jordan, and some of those people only got 55 minutes to get moving.

“When the opportunity arises to get people out, we take that opportunity,” Mr Butler said.

There are still more than 1200 Australians registered for assistance to depart Israel, where the airspace is also closed.

with Reuters

The nation’s wealthiest state is on track to remain an outlier on debt compared to other jurisdictions as it unveils another massive surplus.

Western Australian Treasurer Rita Saffioti’s second state budget on Thursday delivered a $2.5 billion windfall for the current financial year, with a further $2.4 billion surplus projected for 2025-26.

It’s the state’s seventh consecutive operating surplus, which the Cook government says will help the resource-rich state diversify and set its economy up for the future.

“This budget is about fortifying Western Australia from these global shocks,” she told reporters at the budget lockup.

“We’ve focused on strong economic management and strong finances.

“We could blow all the money and then leave unsustainable debt for our future generations, but we’re not going to do that.”

Net debt is expected to grow to $33.6 billion at the end of the current financial year, $1.1 billion more than forecast in December, and expand to $42.4 billion over the forward estimates.

The treasurer said debt was more than $10 billion lower than projected when WA Labor came to office in 2017.

At 7.5 per cent of Gross State Product, the state’s debt levels are the lowest in the nation, with net debt to GSP forecast to remain well below 10 per cent of GSP over the next four years. 

By contrast, NSW, Victoria, Queensland and South Australia all have net debt to GSP ratios growing to an average of more than 20 per cent or more over the next four years.

WA had gone from having the highest ratio of net debt as a percentage of GSP in the country at 13.8 per cent under the previous Liberal-National government to having the lowest under WA Labor, Ms Saffioti said.

WA’s relatively lower debt position can be linked to its controversial GST deal, consulting firm Adept Economics said.

Debt is climbing rapidly in all states except WA over the next four years, according to the firm’s analysis.

Victoria has the worst debt outlook, while NSW, SA and Queensland are competing for the second-worst position, it said

By 2027-28, gross state debt per capita will be $35,000 in Victoria, $30,000 in SA, $29,000 in Queensland and $28,000 in NSW. 

Western Australia had the most favourable debt outlook at about $18,000.

Ms Saffioti said WA was the most resilient state in the nation and with manageable debt levels.

The market for WA’s key commodity, iron ore, also remained strong, along with domestic consumption and the jobs market, but global impacts on international trading partners could be significant in the future, she said.

The treasurer said WA’s controversial GST share was fundamental to the state’s ability to fund new industrial projects that sent much of their revenue to federal coffers.

WEST AUSTRALIAN LABOR GOVERNMENT BUDGET FOR 2025/26

* Surplus: $2.4 billion 

* Revenue: $50.2 billion

* Expenditure: $ 47.8 billion

* Net debt: $38.9 billion

* GST revenue: $7.8 billion

* Employment growth: 1.75 per cent

* Economic growth: 2.5 per cent

Rozita Hassaniserkani is worried her father in Iran will forget her before she can see him again.

It was several days after Israel’s initial strikes on Iran before she could make contact with her family in Tehran.

“I didn’t have anything from them and it was so stressful,” she told AAP.

“They are OK but there are so many people, so many innocent people, killed in the last few days and it’s really sad.

“When you know your loved one or your country is in danger … and you can’t do anything, I think it’s the worst feeling anyone can experience.”

Ms Hassaniserkani – who came to Australia in 2012 – planned to visit Iran in July to see her father, who has Alzheimer’s disease.

“He might forget me if I don’t see him soon,” she said.

“I was crying like a child and saying ,’Why (should) these kind of things happen in this world, when everybody can live in peace?'”

Israeli strikes on Iran have killed at least 639 people and wounded 1329 others, the Washington-based group Human Rights Activists says.

Israel says at least 24 civilians have been killed by retaliatory strikes.

Australians in Iran have been advised to shelter in place if they can’t leave safely, while the government has already evacuated some citizens from Israel via Jordan.

Iranian refugee Nazanin Jebeli said the past week had been difficult.

“I’m worried for my people, but at the same time, Iranian women, they’re looking for peace, and that’s what matters,” she told AAP.

“Iranian people, no matter what, history has always showed that they had each other’s back in difficult times and we support each other.”

US President Donald Trump has demanded that Iran unconditionally surrender, saying he knew where Supreme Leader Ayatollah Ali Khamenei was hiding.

Iran has warned of “all-out war” if the US joins the fray.

Foreign Minister Penny Wong has urged Iran to resume negotiations to discontinue any nuclear program following Israel’s attempts to wipe out the Islamic republic’s missile capabilities, claiming it was on the verge of developing nuclear weapons.

Ms Hassaniserkani and Ms Jebeli are among the group of people featured in Archibald Packing Room Prize-winning artist Kathrin Longhurst’s exhibition Collective Threads: A Public Presence, which opened at Sydney’s Cato Gallery on Thursday.

Ms Longhurst – born in East Germany during the Cold War – related to living in an oppressive regime and said working with the Iranian women had proved inspiring and empowering.

The project stemmed from protests in 2022 over the death of Iranian woman Mahsa Amini, but has taken on additional significance in recent days.

“I know there’s a lot of anxiety in the Iranian community but this whole body of work has been about people supporting each other, women supporting women,” Ms Longhurst said.

US President Donald Trump has extended to September 17 a deadline for China-based ByteDance to divest the US assets of short-video app TikTok despite a law that mandated a sale or shutdown without significant progress.

Trump signed an executive order pushing back Thursday’s deadline for 90 more days, a step that he had previously signaled.

The Republican president had already twice granted a reprieve from federal enforcement of a law that mandated the sale or shutdown of TikTok that was supposed to take effect in January, absent significant progress toward a sale.

Trump has said he wants to keep the app, which helped him woo young voters in the 2024 presidential election, active in the US.

He has also expressed optimism that Chinese President Xi Jinping would approve a deal that preserves the app, though it’s not clear how significantly the topic has featured in the two countries’ ongoing trade talks to resolve a tariff dispute.

“We are grateful for President Trump’s leadership and support in ensuring that TikTok continues to be available,” TikTok said in a statement posted on its website.

The company said it is continuing to work with US Vice President JD Vance’s office on the matter.

“President Trump will sign an additional executive order this week to keep TikTok up and running,” White House press secretary Karoline Leavitt said on Tuesday.

“President Trump does not want TikTok to go dark,” she added, saying the administration will spend the next three months making sure the sale closes so that Americans can keep using TikTok with the assurance that their data is safe and secure.

Trump had said on Tuesday that he would “probably, yeah,” extend the deadline.

“Probably have to get China approval but I think we’ll get it,” he told reporters aboard Air Force One.

“I think President Xi will ultimately approve it.”

A 2024 law required TikTok to stop operating by January 19 unless TikTok’s Chinese parent ByteDance had completed divesting the app’s US assets or demonstrated significant progress toward a sale.

Trump began his second term as president on January 20 and opted not to enforce the law. He first extended the deadline to early April, and then again last month to June 19.

In March, Trump said he would be willing to reduce tariffs on China to get a deal done with ByteDance to sell the short-video app used by 170 million Americans.

A deal had been in the works this spring that would spin off TikTok’s US operations into a new US-based firm, majority-owned and operated by US investors, but it was put on hold after China indicated it would not approve it following Trump’s announcements of steep tariffs on Chinese goods.

Some Democrats argue that Trump has no legal authority to extend the deadline and suggest that the deal under consideration would not meet legal requirements.

The Bank of England is warning about the “highly unpredictable” geopolitical environment as it keeps its main interest rate unchanged at a two-year low of 4.25 per cent.

With concerns mounting over the conflict between Israel and Iran, and uncertainty over US President Donald Trump’s tariff agenda, rate-setters at the bank were widely expected to keep borrowing costs on hold as they await developments.

However, the news that three of the nine policymakers on the Monetary Policy Committee voted to cut rates by a quarter of a percentage point has swelled market expectations that rates will be cut again in August.

Minutes to the meeting showed that policymakers were mindful of how the conflict in the Middle East will affect oil prices, which have risen sharply in recent days to more than $US75 a barrel.

The prevailing view at the bank was that inflation, which stands at 3.4 per cent, would remain high in the coming months but start to head back towards 2026, especially as unemployment has started to rise, a development that can keep a lid on wage demands and hence lower inflation. 

The uptick in oil prices has the potential to offset that. 

“Interest rates remain on a gradual downward path, although we’ve left them on hold today,” bank governor Andrew Bailey said on Thursday. 

“The world is highly unpredictable.”

Since its first quarter-point rate cut last August from the 16-year high of 5.25 per cent, the Bank of England has played it steady, reducing interest rates every three months. 

That would mean the next reduction is in August.

Economists believe that remains the most likely outcome but cautioned that geopolitical events such as further escalation of the conflict in the Middle East could prompt a reassessment.

The cuts have come even though inflation has been above the bank’s target rate of two per cent for most of that time. 

Rate-setters cannot do much about current inflation so set policy on a longer-term horizon, such as over two years. 

Uncertainty over the level of tariffs US President Donald Trump will impose around the world is also clouding the outlook for prices around the world. 

Though the UK looks like it will be spared a raft of tariffs, the backdrop for the global economy remains highly uncertain.

Global stocks have fallen and the dollar has risen as investors, concerned over the United States’ possible entry into the Israel-Iran air war, seek safe-haven assets and ditch riskier ones.

President Donald Trump kept the world guessing about whether the United States would join Israel’s bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, “I may do it. I may not do it.”

The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme.

In Europe, stocks fell for a third day on Thursday, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April.

US S&P 500 futures fell 0.6 per cent, although most US markets – including Wall Street and the Treasury market – will be closed on Thursday for a public holiday.

“Market participants remain edgy and uncertain,” said Kyle Rodda, senior financial markets analyst at Capital.com.

Speculation was rife “that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US by Iran”, he said.

“Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth.”

Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week.

Brent crude rose nearly one per cent to $US77.40 a barrel, close to its highest since January.

Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce.

The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars – both risk-linked currencies – down 0.7 per cent and one per cent, respectively.

Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump’s displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year.

However, Fed chair Jerome Powell struck a cautious note about further easing ahead, saying at his media conference later that he expected “meaningful” inflation ahead as a result of Trump’s aggressive trade tariffs.

Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts.

The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut.

The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs.

The Bank of England is up next and is expected to keep UK rates unchanged.

Data on Wednesday showed inflation cooled as expected in May, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war.

Sterling edged 0.1 per cent lower to $US1.341.