They were taking shelter under their beds to dodge the weapons
In the second week of a conflict that has already reshaped the Middle East's political landscape, US and Israeli forces struck Iran in an operation that killed its supreme leader, sending shockwaves through the arteries of global commerce. The Strait of Hormuz — that narrow passage through which a fifth of the world's oil must travel — now sits at the centre of an economic and military standoff whose consequences are being felt at petrol stations from Darwin to Dubai. Humanity finds itself once again at the intersection of geopolitical ambition and everyday survival, where the price of a litre of fuel becomes a measure of how far a distant war has already travelled.
- Australian petrol prices have shattered all previous records, with unleaded surpassing $2.28 per litre and diesel exceeding $2.60, as global oil markets convulse over the threatened closure of the Strait of Hormuz.
- The killing of Ayatollah Khamenei in the US-Israeli operation 'Epic Fury' has triggered Iranian vows of retaliation against any regional oil facilities linked to American interests, keeping energy markets on a knife's edge.
- Two thousand US Marines are steaming toward the region aboard the USS Tripoli as Trump warns Iran will be struck 'very hard over the next week,' while offering no clear timeline for when — or whether — the conflict will end.
- A missile struck a helipad inside the US Embassy compound in Baghdad, and the UAE has arrested ten people for sharing footage of its air defence systems, signalling how rapidly the conflict is destabilising the wider region.
- Diplomatic threads are emerging — Iran has floated allowing limited tanker passage if oil is traded in yuan rather than dollars, and the US Navy plans to escort tankers through the strait — but neither development has yet translated into relief at the pump.
- Tens of thousands of Iranian civilians have been displaced, and Australian Greens senator Nick McKim has challenged his government's decision to commit defence resources to the strikes while simultaneously tightening restrictions on Iranian refugees seeking safety.
The United States and Israel launched coordinated air strikes on Iran under the name Operation Epic Fury, killing Supreme Leader Ayatollah Ali Khamenei and other senior military figures. The strikes have moved with extraordinary speed from the battlefield into the global economy, with the Strait of Hormuz — the narrow chokepoint carrying roughly one-fifth of the world's oil — now at the heart of an escalating standoff.
For Australians, the war's reach is visible at every petrol station. Unleaded fuel has climbed past $2.28 per litre in major cities, with diesel exceeding $2.60 — the highest prices ever recorded in the country, according to the NRMA. Darwin, Sydney, and Perth all set local records, reflecting global anxiety about whether oil shipments through the strait can continue unimpeded.
President Trump confirmed that US forces struck Kharg Island, Iran's primary oil export terminal, though he said its infrastructure was deliberately spared 'for reasons of decency.' He has threatened to target it directly if Iran continues blocking shipping. Iran has responded by vowing to strike any regional oil facility with American ties. To manage the standoff, the US Navy is preparing to escort tankers through the strait, while a senior Iranian official indicated Iran might allow limited passage — but only if oil is settled in Chinese yuan rather than US dollars, a pointed challenge to the dollar's dominance in global energy trade.
The military build-up continues regardless. At least 2,000 US Marines are en route aboard the USS Tripoli, accompanied by a missile cruiser and destroyer. Trump has said the US has 'virtually unlimited ammunition' and can sustain the campaign indefinitely, while senior officials have offered timelines ranging from days to months.
The human cost is already severe. Tens of thousands of Iranians have been displaced, a fact raised in the Australian parliament by Greens senator Nick McKim, who criticised the Labor government for committing defence support to the strikes while simultaneously restricting Iranian immigration. He drew a sharp contrast between the government's decision to grant temporary asylum to members of Iran's Women's Football Team for media visibility and its broader legislative moves to limit refuge for other Iranians fleeing the same conflict.
Beyond Iran's borders, a missile struck a helipad inside the US Embassy compound in Baghdad's Green Zone, and the UAE arrested ten people — including some who shared AI-generated footage of landmarks under attack — for distributing images of the country's air defence operations. The arrests, carrying minimum sentences of one year and fines approaching $39,000 Australian dollars, underscore how regional governments are working to control the information environment as the conflict deepens.
The Middle East conflict has entered its second week with a dramatic escalation. The United States and Israel launched coordinated air strikes against Iran in an operation called Epic Fury, killing Ayatollah Ali Khamenei and other senior military leaders. The strikes have rippled outward with stunning speed—disrupting shipping lanes, rattling energy markets, and sending fuel prices to historic levels across the globe.
In Australia, the impact is immediate and visible at every petrol station. Unleaded fuel has climbed past $2.28 per litre in major cities, with diesel exceeding $2.60 per litre. Sydney recorded $2.284 for unleaded and $2.625 for diesel. Perth hit $2.286 and $2.629. Darwin, the most expensive, reached $2.327 for unleaded. These are the highest prices in Australian history, according to the NRMA. The surge reflects global anxiety about the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world's oil supply flows. Any disruption there sends tremors through energy markets everywhere.
President Trump has announced that US forces struck military targets on Kharg Island, Iran's primary oil export terminal, which handles about 90 percent of Iranian crude. Video footage posted by Trump and verified by CNN shows large explosions and black smoke across airport facilities and runways. Trump said oil infrastructure on the island was deliberately spared "for reasons of decency," but he has threatened to target it if Iran continues blocking ships from passing through the strait. Iran has responded by vowing retaliatory strikes against any oil facilities in the region with American ownership or cooperation.
To manage the crisis, Trump announced that the US Navy will soon escort oil tankers through the Strait of Hormuz to protect them from Iranian attack. A senior Iranian official told CNN that Iran is considering allowing a limited number of tankers to pass through, but only if the oil is traded in Chinese yuan rather than US dollars—a significant shift in currency politics. These developments have raised hopes that fuel prices might stabilize, though the conflict remains volatile and unpredictable.
The military escalation is accelerating. At least 2,000 US Marines are en route to the Middle East aboard the USS Tripoli, which departed Okinawa on Saturday with an Amphibious Ready Group that includes a missile cruiser and destroyer. Trump has said Iran will be hit "very hard over the next week." When asked on Fox News how long the war would last, Trump said he would end it "when I feel it in my bones," adding that the US has "virtually unlimited ammunition" and "can go forever." Senior administration officials have offered a wider range of estimates, suggesting the conflict could last anywhere from days to months.
The human toll is already substantial. According to Australian Greens senator Nick McKim, tens of thousands of Iranians have been displaced from their homes. McKim criticized the Labor government for sending Australian defence resources to support the strikes while simultaneously restricting Iranian immigration. He noted the contradiction of granting asylum to members of the Iranian Women's Football Team for media purposes while introducing legislation to restrict other Iranian women, children, and men seeking refuge. "They were instead taking shelter under their beds or any other place they could find to try to dodge the weapons," McKim said in parliament.
A missile also struck a helipad inside the US Embassy in Baghdad on Saturday, landing within the embassy compound in the Green Zone, the heavily fortified district housing Iraqi government institutions and foreign embassies. The embassy had renewed its Level 4 security alert for Iraq, warning that Iran and Iran-aligned militia groups have carried out attacks in the past and may continue to do so. The sprawling embassy complex, one of the largest US diplomatic facilities in the world, has been repeatedly targeted by rockets and drones.
In the United Arab Emirates, authorities have arrested 10 people for sharing footage of the country's air defence operations on social media, including both real video and AI-generated content depicting landmarks under attack. Those arrested face expedited trials with minimum sentences of one year in prison and fines of 100,000 dirhams, roughly $38,887 Australian dollars. The crackdown reflects regional governments' efforts to control information flow during the conflict.
Notable Quotes
We're way ahead of schedule. We have virtually unlimited ammunition. We can go forever.— President Trump, on Fox News
Innocent people, including schoolchildren, are being slaughtered in their droves, entirely predictably. And they are being displaced in their tens and hundreds of thousands from their homes.— Australian Greens senator Nick McKim, in parliament
The Hearth Conversation Another angle on the story
Why does what happens in Iran matter so much to someone filling up a car in Sydney?
The Strait of Hormuz is a chokepoint. One-fifth of the world's oil passes through it. When there's war in that region, traders get nervous about supply. They bid up prices immediately, before anything actually stops flowing. Fear moves markets faster than physics.
But Trump says the Navy will escort the tankers through. Doesn't that solve it?
It might, eventually. But right now, people don't know if that will work, or how long it will take, or whether Iran will accept it. Uncertainty is expensive. And Trump's timeline is vague—he said he'll end the war "when I feel it in my bones." That's not a plan. That's a feeling.
What about the people actually in Iran?
Tens of thousands have been displaced. They're fleeing their homes. And Australia, which is participating in the strikes, is simultaneously making it harder for Iranians to immigrate here. There's a real contradiction there—we're helping drop the bombs and closing the door to the refugees.
Is there any chance this de-escalates?
Iran is talking to China about trading oil in yuan instead of dollars. That's a negotiating signal. And Trump spared the oil infrastructure on Kharg Island, which he said was "for reasons of decency." Those are small openings. But with 2,000 Marines heading to the region and Trump saying the US can "go forever," the momentum is still toward more conflict, not less.
How long could this last?
Nobody really knows. Trump won't say. His officials are saying days to months. The longer it goes, the more expensive fuel gets, and the more people get displaced. It's a war that's already affecting grocery prices in Australia, even though Australia isn't directly threatened.