By The South Asia Times

CANBERRA – Australian Prime Minister has expressed grave concern over the United States' retaliatory strikes against Iran, warning that the escalating conflict threatens to shatter the fragile ceasefire and inflict severe damage on the global economy.

In an interview with ABC News, the Prime Minister said he was "very worried both about the human impact that comes with war, but also the economic impact that is having a massive effect on the global economy."

"We want to see a de-escalation because of the impact not just in the Middle East, but we're a long way away. But we're impacted here each and every day," he said.

The Prime Minister's comments came after the United States launched strikes on southern Iran. US Central Command (CENTCOM) said American fighter jets struck Iranian air defense systems and radar sites near the Strait of Hormuz in response to the downing of a US Army Apache helicopter.

In retaliation, Iran's Islamic Revolutionary Guard Corps (IRCC) said that 21 American military targets at US air and naval bases across the region had come under attack.

When asked whether the government would extend fuel excise cuts if the Strait of Hormuz remains closed and the conflict spirals, the Prime Minister said Canberra would "make the assessment" in a "volatile global environment."

He revealed he had received "two security updates this morning" before 9 a.m., underscoring the rapidly changing situation.

The Prime Minister defended his government's handling of fuel security, noting that Australia now has "more fuel today than we had on February 28" — a direct result of relationships built and structures put in place, including underwriting fuel imports through Export Finance Australia.

"The Opposition was saying there would definitely be rationing at Easter or just after Easter. We're now into June," he said.

Pressed on whether any security briefing had ever declared a peace deal "imminent" — despite President Donald Trump reportedly making such claims dozens of times — the Prime Minister sidestepped a direct answer.

"We follow what the advice is, of course, and on many occasions that has been declared. But we have a caveat, of course, which is that it's uncertain," he said.

He added that economic markets respond to such news statements from the United States and elsewhere, creating "a great deal of difficulty."

The Prime Minister reiterated Australia's position, saying: "What we certainly want to see is a permanent ceasefire. We want to see a de-escalation of the conflict there, because that is in everyone's interest. It's certainly in the interest of the global economy."

With US and Iranian forces now trading direct strikes and the Strait of Hormuz — a chokepoint for 20% of global oil — once again contested, the Australian leader's unusually blunt warning reflects growing international alarm that the Middle East is sliding toward a wider war.