The temporary tax cut will lower fuel costs by 26.3 Australian cents per litre, Albanese said, while the government will also remove the heavy road user charge.

Treasurer Jim Chalmers said the combined measures would cost about A$2.55 billion.

Global oil markets have tightened sharply after disruptions to shipments through the Strait of Hormuz, through which around one-fifth of global supply previously passed. Brent crude has risen 59% in March, reaching $115.66 per barrel at the start of trading on Monday.

Domestic fuel prices have climbed in response, with diesel exceeding A$3 per litre and petrol reaching A$2.50, according to industry data.

Energy Minister Chris Bowen said the government would use expanded powers to support fuel imports, including underwriting high-cost spot cargoes through Export Finance Australia to ensure supply continuity.

The move aims to assist smaller fuel importers that may be unable to absorb the risks of volatile prices.

Canberra said Australia currently holds fuel reserves equivalent to about 30 days of diesel and jet fuel, and 39 days of petrol, below the 90-day level recommended by the International Energy Agency.

Officials said the country remains at level two of a national fuel security framework focused on maintaining transport and supply chains, warning that prolonged conflict could intensify economic pressures.

Speaking alongside Australian Prime Minister Anthony Albanese in Canberra, von der Leyen said the impact of the crisis was already being felt across economies through rising oil and gas prices.

“We all feel the knock-on effects on gas and oil prices on our businesses and our societies,” she said, highlighting the broader economic repercussions of prolonged instability in a region central to global energy production and transit.

Her remarks come as the Middle East conflict disrupts key supply routes and raises concerns over sustained volatility in energy markets.

The region accounts for a significant share of global oil exports, making it highly sensitive to geopolitical tensions.Von der Leyen emphasized that continued hostilities risk compounding inflationary pressures and undermining business confidence, particularly in energy-importing economies.

She urged all parties to pursue a diplomatic solution, stressing the urgency of de-escalation. “It is of utmost importance that we come to a solution that is negotiated, and this puts an end to the hostilities that we see in the Middle East,” she said.

Her comments reflect growing international concern over the broader economic fallout of the conflict, as governments and institutions monitor its impact on global trade, energy flows and financial markets.

Speaking alongside Australian Prime Minister Anthony Albanese during a joint press conference in Canberra, Carney said Canada would stand by its partners as tensions in the Middle East deepen following a large-scale military strike by the United States and Israel on Iran.“One can never categorically rule out participation,” Carney said when asked whether Canada could become directly involved in the conflict. He described the question as hypothetical but stressed that Canada remained committed to supporting its allies and protecting its national interests.“We will stand by our allies,” he said. “We will always defend Canadians.”Conflict dominates diplomatic visitCarney’s visit to Australia has been overshadowed by the widening war in the Middle East following the U.S.–Israeli strike on Iran that killed Iran’s supreme leader, Ali Khamenei, according to statements referenced during the visit.The Canadian leader said the strikes were “inconsistent with international law,” while also reiterating Canada’s long-standing position that Iran should not obtain a nuclear weapon.Carney said Canada supported efforts aimed at preventing Iran from developing nuclear weapons, though he described the situation as “another example of the failure of the international order.”Despite the rising tensions, the prime minister called for restraint and urged steps to reduce the risk of further escalation.Carney reiterated his call for “de-escalation” of the conflict, highlighting concerns that the confrontation could destabilise the broader Middle East and strain the international security system.Middle powers urged to cooperateDuring a speech to Australia’s parliament, Carney urged countries he described as “middle powers” to work more closely together in an international environment increasingly shaped by major geopolitical competition.He said nations such as Canada and Australia faced a choice between cooperating to help shape the evolving global order or allowing larger powers to set the rules.“In this brave new world, middle powers cannot simply build higher walls and retreat behind them. We must work together,” Carney told lawmakers.He said countries with similar political and economic values could help influence international governance through cooperation and coordinated policies.“Great powers can compel, but compulsion comes with costs, both reputational and financial,” he said, adding that countries such as Canada and Australia possessed the ability to convene partners because they were seen as reliable actors in international affairs.Carney said these countries could strengthen their influence by aligning their policies with their stated values and working collectively in multilateral forums.

Expanding economic and strategic cooperationCarney also highlighted plans for deeper cooperation between Canada and Australia across a range of sectors including defence, artificial intelligence and natural resources.He said the two countries intended to work together as “strategic collaborators” and pointed to the potential of combining their rare earth mineral resources, which are widely used in advanced technologies and clean energy systems.“We know we must work with others who share our values to build solid capabilities,” he told parliament, warning that countries risked being “caught between the hyperscalers and the hegemons” if they failed to strengthen partnerships.Carney’s visit forms part of a broader tour of the Asia-Pacific region aimed at expanding economic partnerships and reducing Canada’s reliance on the United States.

The trip comes amid strained relations between Ottawa and Washington. Carney has previously clashed with U.S. President Donald Trump, who has threatened tariffs on Canadian goods and has at times suggested the possibility of annexing Canada.Earlier this year, speaking at the World Economic Forum in January, Carney warned that the U.S.-led global system of governance was undergoing what he described as “a rupture,” reflecting broader shifts in the balance of geopolitical power.

Speaking in London, Albanese said the meeting was a chance to discuss the “strongly building” support for AUKUS between the two allies but would not be drawn on the position of U.S. President Donald Trump.

The AUKUS pact, sealed in 2021, aims to provide Australia with nuclear-powered attack submarines from the next decade to counter China’s ambitions in the Indo-Pacific region.

Trump’s administration is undertaking a formal AUKUS review led by Elbridge Colby, a top Pentagon policy official and public critic of the agreement.

Asked if his meeting with Starmer gave him increased confidence that AUKUS would proceed, Albanese said: “I have always been confident about AUKUS going ahead.

“Every meeting I’ve had and discussions I’ve had with people in the U.S. administration have always been positive about AUKUS,” he said, according to an official transcript.

Under AUKUS – worth hundreds of billions of dollars – Washington will sell several Virginia-class nuclear-powered submarines to Canberra, while Britain and Australia will later build a new AUKUS-class submarine.

Australia and Britain signed a treaty in July to bolster cooperation over the next 50 years on AUKUS.

During his visit, Albanese is also expected to meet with King Charles, Australia’s official head of state.

Following a tough loss, the Liberals need to genuinely listen to the concerns of people, whether they reside in city apartments or in the countryside.

It was just another morning in Canberra when the Breaking News spread that President Donald Trump, back at the White House, had signed an important executive order. This order meant there would now be a big 10% tax on everything Australian exports to the United States. This sudden announcement was a huge shock for the Liberal Party. They had always believed in the strong friendship with the US, feeling secure because of it. But now, that relationship was causing problems. The American flag, once a symbol of safety and security, was now becoming a sign of economic trouble and challenges in upcoming elections. For many, this was a wake-up call to rethink how this alliance impacts the future.

Political Rust due to Liberal’s ‘Mateship’ Relationship

For a long time, the Liberals were known to rely on their strong ties with Washington for their foreign and economic policies. This close relationship was seen as a key part of their strategy, starting with John Howard and continuing with Scott Morrison, who focused on building friendly alliances. They promoted this connection as a kind of safety net against the unpredictable nature of the Asia-Pacific region. However, when President Trump imposed tariffs, it had a negative impact on many Australian products like beef, wine, lithium, and education services. The previous promises of security no longer seemed dependable. Exporters were frustrated, business leaders rushed to adjust their supply chains, and farmers in rural Australia became increasingly worried as American buyers could vanish quickly.

Failure of ‘Make Australia Great Again’

The “Make Australia Great Again” campaign led by Peter Dutton ended in disappointment instead of victory. The campaign offices and Liberal Party halls were partially empty, signalling a possible failure. Dutton had adopted strategies like those of Donald Trump. He opposed “woke” culture, talked tough about immigration, and wanted to reduce the public service. While these ideas excited a small group, most Australians found them out of touch with their daily lives. Trump’s trade tariffs had already hurt Australian exports and increased living costs, causing people to reject the chaos linked to Dutton’s approach. Many felt Dutton acted too much like Trump, and his campaign failed on election night as he even lost his own seat. When Anthony Albanese celebrated his win, it was clear Australians wanted stability instead of chaos. The Liberal Party’s attempt to imitate American politics turned into a lesson on the risks involved.

PM Anthony Albanese capitalized despite Dutton’s attacks

Anthony Albanese initially faced a difficult situation when Trump’s tariffs had a big impact on Australia’s economy. Peter Dutton criticized Albanese, claiming he was so unimportant that Trump ignored him while deciding the tariffs. Instead of getting upset, Albanese took the opportunity to address the concerns of Australians. He called the tariffs “totally unwarranted” and said they were “not the act of a friend.” However, he made it clear that he did not want to respond with more tariffs. Albanese emphasized, “We will not join a race to the bottom that leads to higher prices and slower growth,” expressing his belief in finding better solutions for the economy.

Albanese remained calm in his leadership. He introduced specific support for industries that were affected, starting with a $1 billion resilience fund. Alongside this, he promised to help exporters discover new markets. He pointed out to voters that the US takes only five percent of Australia’s exports, assuring them that Australia was better prepared than most to handle these tough times. Meanwhile, Dutton’s campaign may have faced difficulties due to uncomfortable comparisons with Trump and a shift to extreme right-wing allegations. This approach made his campaign seem loud and disconnected from what the public really expected for this term, which was steadiness and reliability, not showy displays.

Dutton claimed he was the only one who could have gotten an exemption from Trump, but many people didn’t buy it. This was because there were photos of his party members wearing “MAGA” hats and praising Trump, which were still fresh in voters’ minds during the campaign. Meanwhile, Albanese stayed calm and didn’t blame others, which appealed to voters who were tired of external chaos. Instead of getting involved in loud disputes, he promised to fight for Australian jobs, industry, consumers, and values. By doing this, Albanese turned Dutton’s criticisms into evidence of his own strong leadership.

A Confused campaign launched by Liberals

In 2025, the Liberal Party’s campaign was confusing and inconsistent. They kept changing their policy plans, and their announcements usually came too late to make an impact on voters. Peter Dutton was once considered a strong leader, but his leadership lacked the charisma during the campaign. The campaign put too much focus on his personality, but the reality is Australia and American voters are far different. The party’s message wasn’t precise to voters, and they reversed their positions on important issues like cutting public sector jobs and remote work. They also failed to provide clear alternatives to Labor’s cost-of-living plans. Liberal MP Keith Wolahan said, “We must recognize that things went awry,” which showed that many people in the party thought things didn’t go well.

A new dawn waits for Liberals

Following a tough loss, the Liberals need to genuinely listen to the concerns of people, whether they reside in city apartments or in the countryside. To make a comeback, they must address the problems from their last campaign and refocus on their core mission: supporting families, small businesses, and those who feel left out by rapid changes. By zeroing in on real solutions – like managing inflation, lowering living costs, and creating a balanced energy plan that includes renewables, gas, and nuclear – the Liberals can begin to rebuild trust where it’s needed most.

The party should admit where it went wrong, let go of outdated slogans, and present a clear vision for Australia’s future. This includes focusing on sustainable economic growth and tackling the housing crisis by developing new homes and infrastructure. It also involves restoring trust in public services such as Medicare and local roads. For the Liberals to regain their footing, they must pursue bold and credible reforms. This means cutting down on excessive regulations, supporting small businesses, and ensuring that every policy directly addresses the real-life issues Australians face, like stagnant wages and rising bills. The Liberals must work as a Team instead of highlighting focus on their leader, which requires a unifying leadership who is more accepted and cherished among common Australian circles. 

Disclaimer: Views expressed by writers in this section are their own and do not reflect Milli Chronicle’s point-of-view.

Sydney (Reuters) — Australia on Tuesday reversed a decision of the previous government to recognise west Jerusalem as the capital of Israel, saying the status of the city should be resolved through peace negotiations between Israel and the Palestinian people.