Australians face more cost-of-living pain as farmers struggle to cope with war-induced fuel supply and price struggles.

Service stations in the regional Western Australian towns of Kulin and Corrigin have placed temporary restrictions on fuel because of uncertain deliveries and panic buying.

Shipping has been disrupted through the Strait of Hormuz, one of the world’s most important oil corridors, by the escalating war in the Middle East.

The situation was creating headaches for farmers on the cusp of harvesting summer crops and planting for winter, National Farmers’ Federation president Hamish McIntyre said.

“The conflict in the Middle East reiterates how Australian farmers are at the mercy of geopolitical tensions because of their heavy reliance on imported inputs and export markets,” he said.

“Livestock exports have been disrupted and we expect farmers will soon face higher fuel and fertiliser prices.

“Without fuel and fertiliser, farmers simply can’t get food and fibre to consumers.”

If constraints on fuel and fertiliser continued, Mr McIntyre warned costs on perishable goods such as dairy, fruit and vegetables could rise by 40 to 50 per cent.

“It’s a double effect – it’s cost of delivery, plus cost to farmers that will add up to a greater cost for consumers in our supermarkets,” he said.

Global supply chain challenges were yet to directly flow through to independent supermarkets and grocers, MGA Independent Businesses Australia chief executive Martin Stirling said.

But Mr Stirling acknowledged smaller retailers would have no choice but to pass on any transportation or wholesale good cost increases.

“Passing on price increases is a last resort,” Mr Stirling told AAP.

“They absorb what they can but they’re under incredible cost pressures at the moment.”

Energy Minister Chris Bowen, Agriculture Minister Julie Collins and Industry Minister Tim Ayres were scheduled to meet with officials from the National Farmers Federation, oil companies and the trucking industry on Tuesday.

Australia had 32 days worth of diesel as of Tuesday morning, Mr Bowen confirmed.

He acknowledged there had been a “massive spike” in demand, particularly in regional areas, but insisted domestic fuel stocks were as high when the crisis began.

“We have enough diesel in Australia for our needs for the foreseeable future and there is absolutely no need for panic,” Mr Bowen told reporters.

Australia imports most of its liquid fuel including petrol, diesel and aviation fuel from refineries in Singapore, South Korea and Japan.

Refineries were meeting their contracted obligations but not able to facilitate extra orders because of demand-side pressure, Mr Bowen said.

He said the government wouldn’t hesitate to use the minimum stock obligation if the Middle East conflict threatened domestic fuel security.

Opposition energy spokesman Dan Tehan said the Australian economy relied on diesel and accused Mr Bowen of “sitting on his hands”.

“If he’s right … then what is he doing to make sure it’s distributed evenly across the country so that we don’t have certain areas and certain industries and key industries that are missing out,” he said.

Airlines for Australia & New Zealand chair Graeme Samuel said increasing global oil and refinery costs might flow through to airfare ticket prices.

But he stressed carriers were partially insulated through jet fuel contracts and there was no issue on supply.

“There is no imminent shortage of jet fuel,” the former Australian Competition and Consumer Commission chair said.

Average prices of unleaded petrol have soared past $2 a litre in every capital city except Perth, with the consumer watchdog warning retailers against giving false or misleading reasons for price increases.

Consumer confidence has plummeted to its weakest level since July 2023, according to a weekly ANZ-Roy Morgan survey.

ANZ economist Madeline Dunk linked the result to rising geopolitical uncertainty and crude oil prices boosting inflation expectations.

Mongolia is seeking to renegotiate the “unfair” commercial terms of ‌mining giant Rio Tinto’s $US18 billion ($A25 billion) Oyu Tolgoi copper mine, the Financial Times reports.

Mongolian Prime ‌Minister Gombojavyn Zandanshatar warned the British-Australian multinational in a meeting on Monday that the current deal was unfair, adding that “this whole situation feels like the Mongolian people and the parliament are being deceived”, the newspaper said on Monday, citing video it had seen.

A Rio Tinto spokesperson told Reuters the company was engaged in active ‌negotiations with ‌the Mongolian government, ⁠adding that the discussions reflected their continued commitment to working together to ​achieve Oyu Tolgoi’s full potential for the benefit of all partners.

Zandanshatar and other government officials would meet Rio executives, including head of copper Katie Jackson, this week to discuss the terms of the deal, the report said.

Mongolia owns 34 per cent of Oyu Tolgoi, one of the world’s largest-known copper and gold ⁠deposits, while Rio holds a 66 per cent stake.

The facility ‌is ​Rio’s biggest copper growth project and began open-pit mining in 2011.

Mongolia took a multibillion-dollar loan ​from Rio Tinto ‌at a floating interest rate that was more than 11 per cent to fund its share of the ​capital expenditure needed to develop the mine, the FT said.

The government is proposing Rio reduce the interest rate on the loan to less than six per cent and cut the ​annual ​management fee it charges for the project, ​the report said, adding that Rio risked an increased ‌rate of export tax if negotiations between the parties went poorly.

Reuters could not immediately verify the report.

Rio Tinto did not immediately respond to a request for comment.

At peak production Oyu Tolgoi is expected to produce 500,000 tonnes of copper annually, according to its website.

In 2022, ​Rio agreed to waive $US2.4 billion in debt owed to it by the government related to ​Oyu Tolgoi with both ⁠sides agreeing to “reset” their relationship.

Winding back the federal fuel tax credit scheme has attracted support from the independent body advising on climate change in the most populous state.

NSW Net Zero Commissioner Katerina Kimmorley says electrification of the state’s mining sector is a priority held back by exemptions on diesel tax.

Ms Kimmorley identified reforms to the fuel tax credit for the mining industry – agriculture excluded – as her top opportunity to underpin faster decarbonisation.

“We need to see our mining sector electrified,” she said at the Climate Innovation & Investment Summit in Sydney.

It would take more than repealing the fuel tax credit to drive mining sector decarbonisation, she said, but winding them back would improve the business case for electric trucks and other green alternatives.

NSW is not on track to meet its carbon neutrality goals, according to the state’s independent net zero commission.

All sectors are trailing behind, Ms Kimmorley said, including industry, energy and transport.

Federal fuel tax credits have come under renewed scrutiny as the Commonwealth pursues budget savings and faster emissions cuts in line with its climate targets.

Costing roughly $11 billion a year and no longer tied to the costs of maintaining roads, critics argue it is too big a fiscal burden and is keeping users hooked on a fuel that’s emissions-intensive and vulnerable to supply chain shocks, as exposed by the Middle East conflict.

Under a model put forward by Climate Energy Finance, diesel tax exemptions could be capped at $50 million but businesses could still claim rebates beyond the cap if they reinvested the funds into electrification.

The Australian Council of Trade Unions and the Labor Environmental Action Network have signalled support for a less-generous scheme, as has Andrew Forrest’s mining company Fortescue.

The iron ore miner is presently a beneficiary of the credits but has set itself a target to eliminate fossil fuels from its operations by 2030, a goal the company claims is on track.

Federal Resources Minister Madeleine King has said the government is not considering changes to the fuel credits in the 2026 budget and defended its use by farmers, miners and tourism operators not using public roads.

Wealthy superannuants will pay more tax on balances over $3 million after the Greens rolled over on demands to beef up the contentious new laws.

The government is expected to get the long-promised tax changes passed through parliament by the end of the week.

The Greens had been withholding their support for the superannuation tax package because they felt it didn’t go far enough.

Greens treasury spokesman Nick McKim accused Labor of watering down its original proposal, which was first announced in 2023, because unrealised capital gains will no longer be captured by the new tax.

Starting from July 1, the tax rate on superannuation earnings for accounts above $3 million will be doubled to 30 per cent.

Earnings above $4 million will be taxed at 40 per cent – higher than the original proposal.

The thresholds will be indexed to prevent the number of Australians captured by the changes from blowing out over time.

The new package will also increase the low-income superannuation tax offset threshold from $37,000 to $45,000 and boost the maximum payment to $810.

Despite their misgivings, Senator McKim said the Greens would support the bills as “a down payment on genuine, progressive tax reform” in the upcoming budget.

“This budget is a once-in-a-generation opportunity for ambitious tax reform, and we are opening the door for Labor to walk through,” he said.

The bill barely scratched the surface on the changes needed to fix a tax system “turbocharging intergenerational inequality”, Senator McKim said.

“We expect bold tax reform so young people and working Australians are not left carrying the load while the super-wealthy enjoy generous tax concessions on their income from assets,” he said.

Already, the Greens have been pushing the government to rein in investor tax concessions on property, including the capital gains tax discount and negative gearing, which they argue has fuelled a sharp rise in housing costs and widened wealth inequality.

Treasury is reportedly investigating lowering the 50 per cent discount on capital gains for investment properties held for longer than 12 months.

Treasurer Jim Chalmers thanked the Greens for their “constructive” engagement on the super tax laws.

With the Greens’ support, Labor can get the bill through the Senate, even if the coalition vote against it.

“A vote against these reforms is a vote against a more secure retirement for more than a million Australians, including hundreds of thousands of young people and women,” Dr Chalmers said in a statement.

A ban on social media for under-16s has been rejected by British MPs.

The age limit had been backed by peers earlier this year after growing calls from campaigners, including actor Hugh Grant.

Supporters of the Australian-style ban said parents are in “an impossible position” over the online harms their children are being exposed to.

Others, including the National Society for the Prevention of Cruelty to Children, warned a ban could drive teenagers into unregulated corners of the internet.

MPs voted 307 to 173, a majority 134 on Monday, against the proposed change to the Children’s Wellbeing and Schools Bill, which was brought forward by Conservative former minister John Nash.

However, a ban could still come in future after the Commons supported a government bid to give additional powers to the secretary of state.

Under the amendment in lieu, Science Secretary Liz Kendall could “restrict or ban children of certain ages from accessing social media services and chat bots”.

She could also limit children’s VPN use, restrict access to addictive features, and change the age of digital consent in the UK, Education Minister Olivia Bailey told MPs.

“Many parents and campaign groups have called for an outright ban on social media for under-16s,” Bailey said.

“Others, including children’s charities, have warned that a blanket ban could drive children towards less regulated corners of the internet or leave teenagers unprepared when they do come online.

“That is why, last week, the government launched a consultation to seek views to help shape our next steps and ensure children can grow up with a safer, healthier and more enriching relationship with the online world.”

The consultation will look at whether social media platforms should come with a minimum age requirement and whether platforms should switch off addictive features such as autoplay.

Meanwhile, 107 government MPs abstained from the vote, including Sadik Al-Hassan.

“Parents like me are locked in a daily battle that they simply cannot win alone, fighting platforms that have been specifically designed to keep children hooked,” he said.

“If a drug were causing such measurable harm for 78 per cent, it would be withdrawn, reformulated or placed behind a counter with strict controls on who could access it.

“We have an identifiable source, we have overwhelming evidence of harm, and we have the power to act.”

Members of Australia’s Iranian community fear their relatives will face retaliation as the regime selects a new hardline leader.

Ayatollah Ali Khamenei’s son Mojtaba was named as his late father’s successor by Iran’s clerical body.

The choice defies US President Donald Trump’s declaration that he must be involved in picking Iran’s supreme leader, and signals the regime intends to carry on as it has.

Mojtaba Khamenei is known to be close to the Islamic Revolutionary Guard Corps, which Australia has listed as a state sponsor of terrorism.

Australian Iranian Society of Victoria spokesman Kambiz Razmara said many people couldn’t get in contact with their relatives in Iran.

“I’ve tried to ring my cousins and uncles and aunts, and I can’t actually get through,” he told AAP.

“People are frightened by what could happen to them in Iran and to the family members … it’s a kind of very unfortunate reality we face in our history.”

Australia is considering the request of a Gulf state to deploy troops to the Middle East to help protect it against Iran’s attacks.

The Albanese government is yet to disclose which nation made the request.

Iran has fired at neighbouring countries including the UAE, Qatar and Bahrain following the strikes by the US and Israel which targeted and killed the country’s leader and senior officials.

The conflict has since disrupted travel, shipping, and global markets.

Mr Razmara said he hoped the US wouldn’t walk away from Iranians by allowing the regime to continue.

“It is a pretty scary time for all our people here, we hope they won’t throw us under the bus,” he said.

“What is very, very, clear from our people and people in the diaspora … is that we are opposed to what’s happening in Iran.

“We’re sick and tired of corruption, political oppression and fear that they instil in people.”

Iran has been blocking access to the Strait of Hormuz following the US-Israel strikes with the closing of one of the world’s most important oil corridors sending petrol and diesel prices soaring.

Flights for stranded Australians are operating from the UAE and Qatar to Sydney, Melbourne and Perth.

More than 1700 Australians have returned from the UAE since the start of the war.

There were about 115,000 Australians in the region at the outbreak of conflict.

The coalition has said it is open to Australia helping other countries in the Middle East, with opposition foreign affairs spokesman Ted O’Brien requesting a briefing from the federal government.

US President Donald Trump is urging Prime Minister Anthony Albanese to offer asylum to members of an Iranian women’s football team in Australia.

Advocates had been imploring Australian officials to meet with the team to secure their safety after the squad were seen making what appeared to be an “SOS” hand signal on Sunday night after their final Asian Cup match.

The team is staying at the Royal Pines resort on the Gold Coast and is due to leave Australia later this week.

“Australia is making a terrible humanitarian mistake by allowing the Iran National Woman’s Soccer team to be forced back to Iran, where they will most likely be killed,” Mr Trump said in a post on Truth Social about 1am AEDT.

“Don’t do it, Mr. Prime Minister, give ASYLUM. The U.S. will take them if you won’t,” he said.

Rana Dadpour, the founder of women’s rights group AUSIRAN, on Monday urged government officials to organise private meetings with the team members before they leave the country, warning they could face execution if they return home.

“We need to talk with these girls away from the handlers and the regime-affiliated people who are following them right now in Australia,” she told AAP.

“If they want to stay, I think we need to provide them with every support that we can.”

Leaving their final match of the competition on Sunday night, at least one of the women appeared to make the international signal for help through the window of the team bus – raising an open palm, crossing the thumb over it and folding the four fingers over the top.

Protesters surrounded the bus and the women appeared to film the crowd through the window.

Media reports on Monday night suggested several members of the team had evaded their handlers and were under police protection in Queensland.

“The government should immediately revoke the visas of any accompanying security personnel involved in threats or intimidation against these brave women, and put them in immigration detention now,” Liberal MP Julian Leeser said on Monday evening.

“Every member of the Iranian Women’s Football Team should have an opportunity to speak individually with an Australian Border Force agent or other government official, and to seek asylum if they want it,” Mr Leeser said.

The opposition frontbencher said “we should offer the women of the Iranian team an alternative to returning to Iran”.

Share markets have fallen as the inflationary jolt from surging oil prices threatens to raise living costs and interest rates around the globe, while investors desperate for liquidity flee ‌to the US dollar.

Crude oil futures soared almost 30 per cent to almost $US120 ($A171) a barrel on Monday – one of its biggest one-day jumps on record – threatening to raise costs of products from petrol to ‌jet fuel. 

Brent crude futures were last up almost 13 per cent at $US104.5 ($A149.0) a barrel, while US futures were up 12 per cent at $US101.8 ($A145.1).

Iran named Mojtaba Khamenei to succeed his father Ali Khamenei as supreme leader, signalling that hardliners remained firmly in charge a week into the war with the US and Israel.

That was unlikely to be welcomed by US President Donald Trump, who had declared the son “unacceptable”.

With hostilities continuing in the Middle East and tankers unable to cross the Strait of Hormuz amid the threat of Iranian drone attacks, investors were ‌bracing for a long ‌stretch of higher energy costs.

Investors ⁠await Washington’s response, said Helima Croft, head of global commodity strategy at RBC Capital Markets. 

“With no clear definition of ​what winning looks like, it is hard to forecast whether this will be a multi-week or multi-month conflict.”

The news was sobering for Japan, a major importer of oil and gas, with the Nikkei closing down 5.2 per cent after a 5.5 per cent drop last week.

China, another big oil importer, albeit with a huge stockpile of crude, saw its blue-chip index fall roughly one per cent.

China on Monday said inflation had already picked up in February before the current oil spike, with consumer prices rising 1.3 per cent on the year. 

This is not necessarily a ⁠negative development, given the country has long struggled with disinflation.

The wave of market selling swept Wall Street as ​S&P 500 futures shed one per cent, while Nasdaq futures were down more than one per cent.

European shares tumbled to their lowest in more than two months on Monday, with the pan-European STOXX 600 ​down 1.63 per cent in a ‌third session of losses. 

The benchmark index shed 5.5 per cent last week, its worst weekly performance in almost a year.

In bond markets, the risk of rising inflation ​outweighed safe-haven considerations to shove yields higher globally. 

Yields on 10-year Treasury notes rose five basis points to 4.175 per cent, up from a trough of 3.926 per cent just a week ago.

Interest rate futures slipped as investors feared the risk of higher inflation would make it harder for the Federal Reserve to ​ease ​policy, though disappointing jobs numbers seemed to argue for stimulus.

Data on ​US consumer prices due on Wednesday is forecast to show the annual rate holding ‌at 2.4 per cent in February.

The Fed’s preferred measure of core inflation due on Friday is forecast to hold at 3.0 per cent, well above the central bank’s 2.0 per cent target, and analysts see a risk of an even higher number.

The danger of energy-driven inflation has led markets to wager the next move in rates from the European Central Bank could be up, possibly as early as June.

For the Bank of England, markets have shifted to pricing just a 40 per cent chance of one more easing, compared with two cuts or more before ​the Middle East conflict started.

Nervous investors sought the liquidity of dollars while shunning currencies from countries that are net energy importers, including Japan and much of Europe.

The ​dollar strengthened 0.4 per cent to trade at 158.385 ⁠yen, outweighing safe-haven demand and pushing gold down 1.2 per cent to $US5,106 ($A7,280) an ounce. 

The euro slipped 0.5 per cent to $US1.1557 ($A1.6477). 

Shares in Roche have dropped more than five per cent as ‌the Swiss drug maker failed to show its promising ‌drug candidate giredestrant against a common form of breast ‌cancer can help newly diagnosed patients.

A phase III trial ‌did not ‌provide ⁠reliable evidence that the drug’s use in ​combination with Pfizer’s Ibrance as a first treatment slows disease progression when compared with a standard hormonal therapy plus Ibrance, Roche said in a statement on Monday.

That marked ⁠a reversal of ‌fortunes ​for the oral compound.

The Roche pill in 2025 cut the ‌risk of tumour recurrence in breast cancer patients who ​had received the established initial treatment in a late-stage trial, boosting Roche’s shares.

The giredestrant ​pill ​belongs to a ​drug class known as oral selective ‌oestrogen receptor degraders (SERD) to fight tumours that grow in response to oestrogen, accounting for up to 80 per cent of all breast cancer cases.

The market ​opportunity has also attracted AstraZeneca, which is ​developing rival ⁠compound camizestrant.

Iran has named Mojtaba ‌Khamenei to succeed his father Ali Khamenei as supreme leader, signalling hardliners remain firmly in charge as the week-old US-Israeli war with Iran sends oil prices ‌surging.

Iranian institutions and politicians, from the foreign ministry to lawmakers, issued statements expressing their allegiance to the country’s new supreme leader as the war entered its 10th ‌day and fresh missile and drone strikes reverberated across the Middle East.

“We will obey the commander-in-chief until the last drop of our blood,” a statement from the defence council said.

Senior cleric Ayatollah Sadeq Amoli-Larijani said Mojtaba Khamenei’s appointment was “a balm for the spiritual suffering of our people and an ‌emphasis on the need to continue the luminous path of the late Imam (Khamenei senior)”.

Mojtaba’s father, Supreme Leader Ali Khamenei, was killed in one of the first strikes launched against Iran more than a week ago.

The show of solidarity for Mojtaba comes after US President Donald Trump earlier rejected him as a candidate to be Iran’s new supreme leader, and Israel saying it would target whoever leads Iran.

Mojtaba, ⁠a cleric with influence inside Iran’s security forces and vast business networks under his father, had been viewed as a frontrunner in the lead-up to Sunday’s ​vote by the Assembly of Experts, a body of 88 clerics tasked with choosing Ali Khamenei’s successor.

Trump said on Sunday Washington should have a say in the selection.

“If he doesn’t get approval from us, he’s not going to last long,” he told US ABC News, adding ⁠that ending the war would be a “mutual” decision with Israeli Prime Minister Benjamin Netanyahu.

In an interview with the Times of Israel after the ⁠new supreme leader was named, Trump declined to respond, saying only “we’ll see what happens”.

The Israeli military said on Monday it had begun a wave of attacks in central Iran and had struck infrastructure belonging to Hezbollah militants in Beirut.

Iran and its proxies appeared to have launched attacks across the region too, with rocket and drone strikes targeting a US diplomatic facility near Baghdad’s international airport that were intercepted by C-RAM defence system, police sources said.

A drone strike targeted a US military base near Erbil airport in Iraqi Kurdistan, security sources said, while Saudi authorities reported intercepting a drone near its Jawf region.

Thick smoke was seen rising from the direction of the BAPCO oil refinery in Bahrain, according to a Reuters witness, after the government said ‌an Iranian drone strike hit ‌the area, causing injuries and damage.

The US military reported a seventh American had died from wounds ​sustained during Iran’s ‌initial counter-attack a week ago, a day after Trump presided over the return to the US of the remains of the six others killed. 

The Israeli military said on Sunday two of its soldiers were killed in southern ​Lebanon, marking the first fatalities among its troops since Israel-Hezbollah hostilities resumed last week as Israel intensified air strikes on Lebanon.

At least four people were killed when an Israeli strike hit an apartment in the Ramada hotel building in central Beirut early on Sunday.

The US-Israeli attacks have killed at ​least 1332 ​Iranian civilians and wounded thousands, according to Iran’s UN ambassador.

US crude futures rose more ​than 20 per cent in early trade on Monday, hitting their highest since July 2022, as major Middle Eastern oil producers cut ‌supply because they cannot safely send shipments through the Strait of Hormuz to refiners worldwide. 

The war has forced production stoppages by oil and gas exporters from Qatar to Iraq, with Kuwait announcing cuts at the weekend and analysts predicting the UAE and Saudi Arabia will soon cut output as they run out of oil storage.