Anthony Albanese 'very worried' about human and global economic impacts of Iran war escalation

Prime Minister Anthony Albanese says he is "very worried" about fresh US strikes on Iran and has highlighted the difficulties for global markets responding to US President Donald Trump's repeated peace deal announcements.

It comes as the US said it had ordered fresh strikes on Iran, which it described as a "proportional response to unjustified Iranian aggression" after an American helicopter was downed while patrolling the Strait of Hormuz near Oman.

The two crew members were rescued from the water.

While Iran's Foreign Minister Abbas Araghchi did not directly address the helicopter incident, he said Iran's military would "leave no attack or threat unanswered".

In the hours following Mr Albanese's comments, the Islamic Revolutionary Guard Corps (IRGC) said it had attacked a US Navy base with drones in Bahrain.

Mr Albanese said he was concerned about the human cost of the latest escalation and emphasised the economic impact of the conflict, which is now in its third month.

"We're very worried both about the human impact of course that comes with war, but also the economic impact, that is having a massive impact on the global economy, will get worse rather than better," Mr Albanese told the ABC.

Mr Albanese said markets were having difficulties following the changes to peace deals, when questioned about Mr Trump's repeated statements about the apparent success of negotiations.

He said repeated US statements about a resolution in the conflict between the US, Israel and Iran also carried a "caveat" that there was uncertainty about whether the agreements would hold.

"That's creating a great degree of difficulty as well when economic markets respond to these new statements that are made in the United States and other places as well," Mr Albanese said.

Strait 'open, then it's closed'

Mr Albanese said Australia had repeatedly called for a permanent ceasefire in the conflict.

US House Speaker Mike Johnson said the strikes following the helicopter incident were "proportional and limited" and targeted Iran's radar, missile and command-and-control sites.

"It is defensive in nature. We lament that has become necessary," Mr Johnson told US reporters earlier on Wednesday.

"Iran struck US assets and personnel. We can't allow that, so we're going to have to take care of this business."

Mr Albanese said it was clear Mr Trump wanted to see an end to the conflict, before adding that the government did not read too much into the Trump administration's statements about resolutions.

"President Trump has said, and you've got to take it at face value, but also because of the consequences for the US economy as well, that he does want an end to the conflict," Mr Albanese said.

"We've had a number of declarations. I wake up in the morning and get a readout that says Strait of Hormuz has opened.

Mr Albanese said it was important to ensure a sustained peace deal was reached because the impacts were being felt in countries not involved in the conflict.

"It makes it very difficult to deal with the consequences and even though we're not a party of the conflict, we're not protagonists, it's having a real impact here."

Mr Albanese said the government was yet to make a decision on whether the cuts to the fuel excise would be extended after their expiry date later this month.

Nationals leader Matt Canavan said the cut had provided some relief, but added it had cost billions of dollars to the budget's bottom line.

"I think what we should be doing is keeping a watching brief. If prices spike again, excise relief should be on the table," Mr Canavan said.