Australia will continue to press the case for a de-escalation of a tit-for-tat bombing campaign between Iran and Israel amid fears of an escalation of the conflict, the acting prime minister says.

Israel and Iran began trading missile blows 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, with the conflict continuing into Sunday.

Acting Prime Minister Richard Marles expressed concern that the bombing could escalate into a larger conflict in the region.

“We’re all deeply concerned about the potential for where this now goes in terms of escalation and broadening out into a wider conflict, and that’s why we are urging for diplomacy and dialogue in this moment,” he told ABC Radio on Monday.

“That is why we are exercising our voice, along with countries like the United States, like France, Germany, the UK, to urge for diplomacy and dialogue.”

The missile attacks are set to be a key focus of talks at the G7 summit in Canada, which Prime Minister Anthony Albanese is attending.

Iran’s health ministry said 224 people have been killed in the attacks since Friday.

Spokesman Hossein Kermanpour said on social media that 1277 other people were hospitalised, and asserted that more than 90 per cent of the casualties were civilians.

Israeli rescue teams combed through the rubble of residential buildings destroyed by Iranian missiles on Sunday, using sniffer dogs and heavy excavators to look for survivors after at least 10 people, including children, were killed, raising the two-day toll to 13.

Mr Marles said Australian diplomatic staff in Iran and Israel have all been accounted for, as have military personnel in the region.

He reiterated safety warnings to Australians in the Middle East, with the situation remaining volatile.

“There are actually thousands of Australians who are in both Iran and Israel, the travel advice for both Israel and Iran right now is do not travel,” he said.

“Our diplomats who are engaged, who are in both our embassies in Tehran and Tel Aviv, are safe and are all accounted for, but we will continue to monitor their safety.”

Despite the calls for de-escalation, Liberal senator Andrew Bragg said Israel was doing the world a favour, given Iran is a state sponsor of terrorism.

“If we were in Israel’s shoes, we would not tolerate a country nearby us getting a nuclear weapon,” he told Today.

“And so I think Israel is trying to stop that from happening – that’s a good thing for humanity, because these guys are the worst regime anywhere on the planet.”

Mr Marles said Israel had a “right to self defence” following the attacks.

“We understand the risk that the Iranian nuclear and ballistic missile program represents, but right now the focus has to be on diplomacy and dialogue,” he said.

The prime minister will soon begin running a diplomatic gauntlet that will end with a much-anticipated meeting with Donald Trump, after landing in Canada.

Anthony Albanese was greeted by local officials and First Nations representatives when he touched down in the Alberta city of Calgary ahead of meetings with world leaders on the sidelines of the G7 summit in Kananaskis.

Mr Albanese will first meet with Canadian Prime Minister Mark Carney on Sunday local time (Monday AEST) before a talk with newly-elected South Korean President Lee Jae-myung on Monday, then more discussions the following day with UK Prime Minister Keir Starmer, French President Emmanuel Macron, Japanese Prime Minister Shigeru Ishiba, and German Chancellor Friedrich Merz.

But his final chat face to face with the US president on Tuesday looms as the most important of all.

Every leader has had to reckon with the impact of the US president’s threatened tariffs on their economies.

But Mr Carney, in particular, could provide insight to Mr Albanese.

Despite vowing to fight back against the tariffs, the Canadian prime minister’s meetings with Mr Trump have been relatively well received by both parties and raised hopes for a fresh trade deal between the two North American nations.

Mr Albanese’s meeting with the Republican president is scheduled for Tuesday on the margins of the summit.

The prime minister has taken a less adversarial stance to Mr Trump’s approach than his Canadian peer, preferring to highlight Australia’s long history with its alliance and trading partner.

“The combination of Australia and the United States when we’re working together is an unbeatable combination,” he told business leaders in Seattle on Saturday.

Australian goods exports sent to the US market 10 per cent tariffs and – like all trading partners except the UK – there will be 50 per cent tariffs on aluminium and steel products.

Tariffs are generally passed on by importers to the citizens of the country imposing the tariffs, but can have the effect of reducing demand for the exporting country’s products.

The Labor government is considering using US beef imports and critical minerals as potential bargaining chips as it “engages constructively” with American officials.

Australians’ sense of safety and economic optimism has already plunged amid the talk of tariffs, as well as growing conflicts and global disorder, according to an annual Lowy Institute Poll.

Their trust in the US has fallen to the lowest level in the history of the decades-long poll, with two-in-three respondents holding little to no trust in the traditional Australian ally.

“Australians are clearly unsettled by what they’ve seen of the second Trump administration,” Lowy Institute executive director Michael Fullilove said.

Australia is not a member of the Group of Seven leading industrialised nations but was invited to the event by Mr Carney.

Mr Albanese previously met the Canadian prime minister on the margins of the Papal inauguration last month, but Sunday’s event will be their first formal bilateral discussion.

They are also expected to discuss defence, critical minerals, climate change and the escalating situation in the Middle East.

A major “airport city” development that’s been plagued by delays will get a near-billion-dollar funding injection in a bid to help the project take off.

The aerotropolis precinct near the under-construction Western Sydney Airport will receive $835 million in support as part of the NSW budget, to be delivered later in June.

The surrounding 11,200-hectare industrial and housing zone is designed to create thousands of jobs and drive economic growth in Western Sydney but has been beset by slow decision-making and will likely take decades after the airport’s scheduled opening in 2026 to complete.

But the state government is hoping to turn the stalled project around, announcing on Monday that Sydney Water will invest $644 million to deliver stormwater and recycled water infrastructure across the Mamre Road precinct, northwest of the airport.

It will be the first area developed as part of the aerotropolis, laying the foundation for remaining industrial sites to be built around the airport.

Much of the site is farmland serviced only by local roads and basic infrastructure.

“With billions of dollars now committed, we’re not just talking about building a new airport,” NSW Premier Chris Minns said.

“We’re creating a connected, thriving region that will deliver job, homes and opportunity for generations to come.”

Other funding includes $150 million to lay down roads around the airport district for freight transport and to account for the expanding population of the city.

The airport’s opening in late 2026 will further accelerate population growth in the region, bringing in a projected 63,000 people by 2041.

The $5.3 billion international aviation hub is aimed at catering to five million passengers per year when it opens and 82 million by 2063.

The area will also be fitted out with a new fire station that will become the largest in western Sydney, with $42 million to be spent on the Badgerys Creek facility and more than 50 extra firefighters.

Treasurer Daniel Mookhey was upbeat about the budget on Sunday, saying it would show real wages growing and a recovery in disposable incomes after recent interest rate cuts.

“We are going to look to cut our interest payments, we are going to want to keep debt stable, we are looking to remove waste when we see it, we’re determined to rein in consultant spending,” he said.

NSW was forecast to record a $5 billion budget deficit in 2024/25 amid sluggish home sales and fast-growing cost of insurance for state employees, according to a mid-year update delivered in December.

German Chancellor Friedrich Merz says he hopes an upcoming meeting of G7 countries in Canada will show unity and could reach agreement on four key points to help resolve the conflict between Israel and Iran.

Speaking as he prepared to fly to Canada for the G7 summit, Merz said the Middle East conflict would be high on the agenda.

The four points were: that Iran cannot develop or posses nuclear weapons; that Israel has the right to defend itself against existential threats, which he said Iran’s nuclear program represented; thirdly, the conflict should not escalate; and fourth, that scope for diplomacy must be created.

“I would like to add that in Germany we are also getting ready in case Iran should target Israeli or Jewish targets in Germany,” Merz told reporters, without going into more detail.

G7 leaders gather for a summit in the Canadian Rockies starting on Sunday until Tuesday.

As summit host, Canadian Prime Minister Mark Carney has decided to abandon the annual practice of issuing a joint statement, or communique, at the end of the meeting.

Leaders who are not part of the G7 but have been invited to the summit by Carney include the heads of state of India, Australia, Ukraine, Brazil, South Africa, South Korea, Mexico and the United Arab Emirates. 

Merz said that Israel had requested fire extinguishing material, which Germany would provide.

Germany’s defence minister, Boris Pistorius, told German state television ARD he had not discussed providing military aid to Israel with his Israeli counterpart, nor had he received any such requests. 

Nothing was being prepared, he added.

Separately, German Foreign Minister Johann Wadephul said he had spoken with his Omani counterpart Badr Albusaidi on how Oman’s ties could help de-escalate tension in the region between Israel and Iran and Yemen’s Houthi rebels.

Merz said the G7 would also discuss the war in Ukraine and that more pressure should be put on Russia to bring it to the negotiating table. 

To that end, European leaders wanted to agree new sanctions on Russia at the end of this month, he said.

Merz said economic issues would also be on the agenda at the G7 summit, and said efforts would be directed towards reaching an agreement over tariffs following a decision by US President Donald Trump’s administration to impose them on its key trade partners earlier this year.

with AP

Vietnam and the United States have made progress during a third round of trade negotiations last week but critical issues remain unresolved, requiring further analysis and continued dialogue, Vietnam’s trade ministry says.

The talks, in Washington DC from June 9-12, were held as a pause on 46 per cent “reciprocal” tariffs on Vietnamese exports approaches expiration in early July, adding pressure on both sides to reach a compromise.

Vietnam’s trade surplus with the United States surged to $US12.2 billion ($A18.8 billion) in May, up nearly 42 per cent year-on-year and 17 per cent higher than April, Vietnamese government data showed.

Exports to the US climbed 42 per cent from a year earlier to $US13.8 billion, hitting a post-pandemic high.

US negotiators have submitted a list of trade demands to Vietnam, which Vietnamese officials described as “tough,” including measures aimed at reducing Vietnam’s reliance on Chinese imports of industrial materials and components.

Vietnam’s trade ministry said on Sunday the delegations had narrowed gaps on issues outlined in Vietnam’s response to the US requests and worked toward mutually acceptable solutions.

Both sides agreed to hold an online meeting in the coming days between Vietnam’s trade minister Nguyen Hong Dien and US Secretary of Commerce Howard Lutnick to address unresolved issues, the ministry added.

The last round of talks was held between Dien, Lutnick and US Trade Representative Jamieson Greer, a format proposed by the United States.

Under pressure from the US, Vietnam has recently cracked down on illegal trans-shipment – typically when cargo is moved between ships during transit – of goods primarily from China.

It has also expressed willingness to lower non-tariff barriers and increase imports of US goods such as planes, farm products and energy although no purchase agreements have been announced.

Tariffs and global conflict have knocked Australians’ optimism in the economy and trust in the US to 20-year lows, a long-running poll by an independent think tank shows.

Since it began in 2005, the Lowy Institute Poll of Australians’ attitudes to the world has never been so bleak.

Trade turmoil and ongoing cost-of-living pressures were having a negative impact on household confidence even before President Donald Trump’s “liberation day” tariffs were announced on April 2, after the survey had been in the field.

A little over half of respondents (52 per cent) said they were optimistic about Australia’s economic performance over the next five years, the least since the poll began in 2005 and in line with attitudes during the COVID pandemic in 2020.

Young Australians aged 18-29 felt the least optimistic about the economy, while Labor voters were more confident than Liberal and Greens-voting counterparts.

Feelings of pessimism reflected a precarious moment, with the world order that had served Australia’s interests well since the end of World War II beset on all sides, said Lowy Institute executive director Michael Fullilove.

“Australians are clearly unsettled by what they’ve seen of the second Trump administration, with almost two-thirds (64 per cent) now holding little to no trust in the United States to act responsibly – the lowest level in the history of the Lowy Institute Poll,” said Dr Fullilove.

But Australians are even less trusting of China – the nation’s largest trading partner – as military tensions over the fate of Taiwan ramp up.

Only 16 per cent of respondents had confidence in Chinese President Xi Jinping to do the right thing, compared to a quarter who had confidence in Mr Trump.

Ongoing distrust in China, which conducted navy live-fire drills off Australian waters shortly before the poll was conducted, was contributing to sustained belief in the importance of the Australia-US alliance, despite distrust in Mr Trump, Dr Fullilove said.

Amid rising authoritarianism around the globe, Australians have never been more firm in their support for democracy, with 74 per cent believing it is preferable to any other kind of government.

“Australians lean towards co-operation,” Dr Fullilove said.

“They feel most comfortable with fellow liberal democracies such as Japan and New Zealand, but remain circumspect towards two regional powers, India and Indonesia.”

Overwhelmingly Australians were in favour of making more goods in Australia, even if they cost more (83 per cent), and distrustful of social media’s impact on democracy (70 per cent).

Those figures will be encouraging for the federal government and its flagship policies to ban children from using social media and promote domestic manufacturing.

The poll was conducted on behalf of the Lowy Institute by the Social Research Centre, which surveyed 2117 Australian residents aged 18 and above between March 3 and 16.

How Reserve Bank board members vote on interest rate decisions is set to become public knowledge, with the bank and the federal government positively disposed to implementing the transparency-boosting reform.

The government’s landmark review into the central bank’s operations recommended it publish non-attributed votes in the board’s post-meeting statement when it does not reach a consensus decision on monetary policy.

While most of the review’s 51 recommendations have already been accepted, a decision on board votes was put off until the central bank’s new monetary policy board could meet and deliberate on the proposal.

With two meetings under the new board’s belt, Reserve Bank governor Michele Bullock met with Treasurer Jim Chalmers on Wednesday to discuss the remaining changes, including signing an updated statement on the conduct of monetary policy.

Dr Chalmers said the reforms were closer to completion – “and that’s a very good thing”.

“They’re all about reinforcing the Reserve Bank’s independence, clarifying its mandate, modernising its structures and strengthening its accountability,” he said.

“I pay tribute to Governor Bullock, the bank’s boards and its leadership for the reforms already in place and the constructive discussions we’ve been having about the rest.

“A lot of progress has been made already and I’m looking forward to bedding down these final changes.”

Changes made to the Reserve Bank’s operations have increased its transparency and communication with the public after the review found it had not always been clear or detailed enough.

The review was prompted in part by previous governor Philip Lowe’s forward guidance debacle.

In 2021, amid great uncertainty at the height of the COVID-19 pandemic, Dr Lowe sought to reassure borrowers with comments that he did not expect the next cash rate rise to come into 2024, which the public eventually perceived to be a broken promise.

Better communication was seen as a way to prevent such incidents from recurring.

But publishing anonymised member votes has limited benefit when the board tends to vote unanimously most of the time.

Critics say the consensus-focused board is prone to groupthink.

Peter Tulip, chief economist at the Centre for Independent Studies and a former Reserve Bank researcher, said many board members could not articulate a coherent position on monetary policy, discouraging dissenting points of view.

“But my strong view is that we don’t want board members like that on the board. Anonymity shields them,” he told AAP.

Dr Tulip argued dissenting votes should be attributed to individuals to encourage the appointment of expert board members who would not rubber-stamp the governor’s decision.

While it was not among the review recommendations, Dr Tulip called for the Reserve Bank to publish its projections of the cash rate, which central banks, including the US Federal Reserve, do.

The Reserve Bank’s aversion to any forward guidance has been a “stupid over-reaction” to the embarrassment following Dr Lowe’s misstep, Dr Tulip said.

Presenting projections alongside a confidence interval would make the board’s pronouncements less susceptible to misinterpretation.

The board will consider its final decision on publishing votes when it meets on July 7-8.

The board will welcome a new member at the meeting, with recently-appointed Treasury Secretary Jenny Wilkinson taking her ex-officio seat at the table in place of predecessor Stephen Kennedy.

Prime Minister Anthony Albanese poached Dr Kennedy to become the nation’s next top bureaucrat after the retirement of Glyn Davis as Secretary of the Department of the Prime Minister and Cabinet.

The treasurer will soon release a Statement of Expectations for the Reserve Bank’s new governance board, which will make clear its role in overseeing the bank’s culture and driving institutional change.

Tariffs will be top of mind for the prime minister and his Canadian counterpart as the two meet ahead of Anthony Albanese’s highly anticipated talks with Donald Trump.

Mr Albanese will land in Canada on Sunday, local time, for bilateral talks after being invited to the G7 summit by Canadian Prime Minister Mark Carney.

Both leaders have had to reckon with the impact of the US president’s threatened tariffs on their economies.

But Mr Carney could provide insight for the Australian’s first face-to-face meeting with Mr Trump.

Despite vowing to fight back against the tariffs, the Canadian prime minister’s meetings with the US president have been well received by both parties and raised hopes for a fresh trade deal between the two North American nations.

Mr Albanese’s meeting with the Republican president is scheduled for Tuesday on the sidelines of the summit.

The prime minister has taken a less adversarial stance to Mr Trump’s approach than his Canadian peer, preferring to highlight Australia’s long history with the US.

“The combination of Australia and the United States when we’re working together is an unbeatable combination,” he told business leaders in Seattle on Saturday.

Australian imports into the US face 10 per cent tariffs and – like all trading partners except the UK – 50 per cent tariffs on aluminium and steel.

The Labor government is considering using US beef imports and critical minerals as potential bargaining chips as it “engages constructively” with American officials.

Australians’ sense of safety and economic optimism have already plunged, according to the annual Lowy Institute Poll, amid the talk of tariffs, as well as growing conflicts and global disorder.

Their trust in the US has fallen to the lowest level in the history of the decades-long poll, with two-in-three respondents holding little to no trust in the traditional Australian ally.

“Australians are clearly unsettled by what they’ve seen of the second Trump administration,” Lowy Institute executive director Michael Fullilove said.

Mr Albanese previously met the Canadian prime minister on the margins of the Papal inauguration, but this will be their first formal bilateral discussion.

They are also expected to discuss defence, critical minerals, climate change and the escalating situation in the Middle East.

Thousands of people have taken to the streets of cities in southern Europe to demonstrate against overtourism, firing water pistols at shop windows and setting off smoke in Barcelona, where the main protest took place.

“Your holidays, my misery,” protesters chanted in the streets of Barcelona while holding up banners emblazoned with slogans such as “mass tourism kills the city” and “their greed brings us ruin”.

Under the umbrella of the SET alliance – Sud d’Europa contra la Turistització, or Catalan for “Southern Europe against Overtourism” – protesters joined forces with groups in Portugal and Italy, arguing that uncontrolled tourism was sending housing prices soaring and forcing people out of their neighbourhoods.

Barcelona, a city of 1.6 million, drew 26 million tourists last year.

Authorities in the northeastern Spanish city said about 600 people joined the demonstration there, some firing water pistols or setting off coloured smoke and putting stickers saying “Neighbourhood self-defence, tourist go home” on shop windows and hotels.

Outside one hotel, an agitated worker confronted the protesters saying he was “only working” and was not the venue’s owner.

There were similar demonstrations in other parts of Spain including Ibiza, Malaga, Palma de Mallorca, San Sebastian and Granada. 

Protests in Italy took place in cities including Genoa, Naples, Palermo, Milan and Venice, where locals oppose the construction of two hotels that will add about 1500 new beds to the city, the organisers told Reuters.

In Barcelona, the city government said last year it would bar apartment rentals to tourists by 2028 to make the city more liveable for residents.

“I’m very tired of being a nuisance in my own city. The solution is to propose a radical decrease in the number of tourists in Barcelona and bet on another economic model that brings prosperity to the city,” Eva Vilaseca, 38, told Reuters at Sunday’s demonstration in Barcelona, dismissing the common counterargument that tourism brings jobs and prosperity.

International travel spending in Europe is expected to rise by 11 per cent to $US838 billion ($A1.3 trillion) this year, with Spain and France among the countries set to receive record numbers of tourists.

A protest in Lisbon was scheduled for later on Sunday afternoon. 

The prime minister has confirmed he will meet Donald Trump face-to-face as millions of Americans take to the streets to protest against the US president.

Anthony Albanese is preparing for one of the most important diplomatic discussions of his career when he holds talks with Mr Trump on the sidelines of the G7 summit in Canada on Tuesday, local time.

The prime minister will be trying to negotiate an exemption from controversial US tariffs.

But he faces an uphill battle to cut through with his message as Mr Trump stares down domestic unrest and renewed conflict in the Middle East.

Mr Albanese was unperturbed as he confirmed the much-anticipated meeting to reporters in Seattle on Saturday, local time.

“Obviously, there are issues that the US president is dealing with at the moment, but I expect that we will be able to have a constructive engagement,” he said.

“We’ll have a discussion as two friends should.”

Mr Albanese said he would raise tariffs and emphasise the importance of the AUKUS security pact, under which Australia is due to acquire nuclear-powered submarines from the US.

Both men have already spoken on three occasions but Tuesday’s arrangement is the first time they will meet in person.

Australia is facing 10 per cent tariffs on goods exported to the US and – like all US trading partners except the UK – 50 per cent tariffs on aluminium and steel sent to America.

Supplies of critical minerals and access to the Australian market for US beef could be used as bargaining chips during the talks.

Mr Albanese did not want to make “grand declarations” prior to the meeting, but he reiterated he would put forward Australia’s interests.

“It is also in the interests of the United States for Australia to be treated appropriately,” he said.

Tensions between two countries have ebbed and flowed in recent days after Australia, alongside several other countries, was criticised by the US for sanctioning two Israeli government ministers.

Australia has also pushed back against US calls to increase defence spending to 3.5 per cent of GDP, while Washington has launched a review into the AUKUS agreement to ensure it aligns with Mr Trump’s “America first” agenda.

The prime minister arrived in Seattle after holding bilateral talks in Fiji and he is expected to leave for the G7 on Sunday.

He used an event involving US business and technology leaders to sing the praises of “free and fair trade” ahead of the tariff talks, hailing a $20 billion commitment from Amazon to expand its Australia data centre operations.

Mr Albanese is also expected to hold talks with Canadian Prime Minister Mark Carney, UK Prime Minister Keir Starmer and other world leaders during the summit.

He landed in America on the same day a controversial military parade commemorating the US army’s 250th birthday took place on the other side of the country, in Washington DC.

The event coincided with Mr Trump’s 79th birthday and represents the first such military parade in more than three decades.

Millions of Americans across the nation gathered to protest the US president as part of “No Kings” rallies held in major cities, while hordes also attended the parade in support of armed forces.

Protest organisers accused Mr Trump of staging a “made-for-TV display of dominance for his birthday” with the military parade, which falls on Flag Day – the date when the US flag was adopted by congress.

Tens of thousands marched to Seattle’s towering Space Needle as they chanted, “no Trump, no KKK, no fascist USA”.

For Stephany Simonelli, who donned a fake crown with a cross and a sash that read “no kings”, it was her first time taking part in a march or rally.

“This just felt absolutely imperative for democracy,” she told AAP.

“I’m really afraid for our country. We, in America, really need to step up and take a stand.”