What happened
Prime Minister Anthony Albanese said he will continue engaging respectfully with U.S. President Donald Trump about the Iran War, including during discussions ahead of the next Quad Summit in the Philippines. Albanese told reporters on Nov. 9 that the Middle East conflict would be a topic and that he has developed a constructive relationship with Trump.
Albanese maintained that the war in Iran is having a global impact on inflation, citing recent interest rate increases in Australia and the Bank of England. He said the conflict is weighing on growth and that its end cannot come soon enough.
The prime minister’s position contrasts with Reserve Bank of Australia Governor Michele Bullock, who said last week that domestic pressures—not the Iran war—were the key driver behind a recent interest rate increase from 4.60 to 4.85 percent. Bullock acknowledged global oil prices as part of the reason inflation remains elevated but said the bank is not tightening monetary policy because of the direct impact of oil prices.
Opposition leaders align with the central bank. Shadow Treasurer Tim Wilson said in late October that the International Monetary Fund forecast Australian growth at 1.6 percent and unemployment peaking at 4.7 percent. Wilson argued that the first rate rise this year came a full month before the first bomb dropped on Iran.
The current war with Iran began on Feb. 28, 2026, amid escalating disputes over nuclear capability.
