US-Iran war as it happened: Trump threatens to ‘obliterate’ Kharg Island if deal not reached; Fuel excise cut to combat soaring petrol prices

Thank you for joining our rolling coverage of the war in the Middle East. Our live blog has closed for the day and will return early tomorrow morning.

Here’s a look at today’s biggest stories:

• Three United Nations peacekeepers from Indonesia have been killed in two incidents in southern Lebanon after a bloody weekend in which Lebanese journalists and medics were also killed in Israeli strikes. Two peacekeepers were killed on today after an explosion from an unknown origin destroyed their vehicle near Bani Hayyan in southern Lebanon. Another was killed yesterday.
• Iran’s vice president has warned US President Donald Trump that if US soldiers set foot on Iran’s key oil terminal, Kharg Island, they will be killed. Trump today threatened to “completely obliterate” all of Iran’s energy assets, including the major oil hub on Kharg Island. Trump said earlier this month that the US military had bombed Iranian miliary sites on the island.
• Trump claimed to have made progress in talks with Tehran, but Iran has denied the claim and said there had been no negotiations with the US since the war began. Iranian Foreign Ministry spokesperson Esmail Baqaei said the US had submitted a request to negotiate, accompanied by a set of proposals for a ceasefire deal, but “all our efforts and capabilities are devoted to defending Iran’s essence”.
• Iran’s foreign minister has insisted the Islamic Republic is targeting only US troops stationed in Gulf states, despite Iranian attacks killing civilians, including numerous migrant workers, across the region.
• The United Nations has urged Israel to repeal a law approving the death penalty for Palestinians convicted of murdering Israelis, after the bill was passed in parliament overnight. Foreign Minister Penny Wong also raised concerns over the law.
• Israeli Prime Minister Benjamin Netanyahu said the war was “definitely beyond the halfway point”, and has ordered his military to further expand its operations in southern Lebanon.

Iran’s revolutionary guards said they had targeted a ship in the Gulf, AP reported, citing the Islamic Republic state news outlet Tasnim.

Earlier today, Iran’s foreign minister insisted the Islamic Republic was targeting only US troops stationed in Gulf states, despite Iranian attacks killing civilians, including numerous migrant workers, across the region.

“Our operations are aimed at enemy aggressors who have no respect for Arabs or Iranians, nor can provide any security,” Seyed Abbas Araghchi said on X.

The Australian sharemarket reversed its early losses and finished higher after a report said US President Donald Trump told aides he’s willing to end America’s war against Iran even if the Strait of Hormuz remains largely closed.

After edging lower in early trade and then jumping as much as 1 per cent at lunchtime, the S&P/ASX 200 closed up 20.8 points, or 0.3 per cent, at 8481.80. Eight of its 11 sectors were in the green after the report from the Wall Street Journal triggered a rise in US futures. The ASX lost 0.7 per cent on Monday.

It was another day of war seesawing for investors as the conflict in the Middle East has upended global markets and triggered concern about a simultaneous spike in inflation and slowdown in economic growth. The war has effectively shut down the strait, a crucial route for energy supplies, boosting oil prices and weighing on sharemarkets.

The ASX recovered from a fall at the open as oil prices stopped climbing following the Journal report. West Texas Intermediate steadied at about $US103 a barrel and Brent, the international standard, edged down slightly to $US107 a barrel, having both jumped earlier after another Iranian attack on an oil tanker in the Persian Gulf.

Trump and his aides assessed that a mission to reopen the strait would push the conflict beyond his timeline of four to six weeks, and it might be better to wind down hostilities while pressuring Tehran diplomatically to resume the free flow of trade, the Journal reported, citing unidentified officials in his administration.

with AP and Bloomberg

A proposed further cut to petrol prices on top of the fuel excise reduction will no longer go ahead after states failed to agree on how best to give back the windfall GST collected from higher petrol prices.

The states had agreed not to pocket the extra GST collected, but haven’t been able to come to a consensus on how best to use those extra millions.

The NSW government wanted to add an extra reduction to the price at the bowser on top of the 26¢ reduction to the fuel excise, which would have been an extra 7¢-10¢ per litre off the price of fuel.

At a meeting with state premiers and chief ministers this afternoon, not all states and territories could agree on that proposal.

Negotiations are now continuing between the states.

Australia, among the world’s top liquefied natural gas exporters, will hold an inquiry to examine taxes on oil and gas firms like Chevron, Woodside and Santos, as the Iran war pushes up energy prices, creating a windfall for producers.

The Senate on Monday agreed to establish a select committee to examine the tax treatment of oil and gas, with Labor senators supporting a motion by the Greens party.

The committee will be led by Greens senator Steph Hodgins-May, who last week called for a tax of at least 25 per cent on gas exports – a proposal she estimated will raise about $17 billion a year in revenue.

Australia is in the midst of an intensifying debate over whether to raise taxes on resources exports, as soaring global prices driven by the Middle East conflict boost profits for major producers. Some politicians, unions and advocacy groups have called for higher levies – including a potential windfall tax – arguing exporters are benefiting from wartime price spikes.

“This inquiry will put the rich tax-dodging gas corporations under the microscope, dismantle their excuses for paying no tax, and build momentum for fairer tax in the upcoming budget,” said Greens leader Senator Larissa Waters Monday.

Bloomberg

The video of a massive explosion shared without comment by US President Donald Trump on Tuesday, Australian time, appears to be of a major strike conducted outside the central Iranian city of Isfahan.

The Baluch advocacy group HalVash shared the same video and others from the ground outside Isfahan. Fire-tracking satellites from NASA suggest the explosions happened near Mount Soffeh, an area believed to have military positions.

The videos show massive fireballs and secondary explosions common with ammunition igniting in a blaze.

Iran has not formally acknowledged the attack.

Isfahan is home to one of three uranium enrichment sites bombed by the US in the 12-day war between Iran and Israel in June 2025. A portion of Iran’s highly enriched uranium is believed to be entombed there – something the US has suggested it could seize with ground forces.

AP

Iran’s foreign minister has insisted the Islamic Republic is only targeting US troops stationed in Gulf states, despite Iranian attacks killing civilians, including numerous migrant workers, across the region.

“Our operations are aimed at enemy aggressors who have no respect for Arabs or Iranians, nor can provide any security,” Seyed Abbas Araghchi said on X, who added that Iran considers Saudi Arabia – which has been subject to Iranian attacks – a “brotherly nation”.

He also said it was “high time” for the Gulf states to eject US forces.

Araghchi shared a photo purportedly showing damage to an American E3 Sentry command and control aircraft at Prince Sultan Air Base in Saudi Arabia, AP reported.