Foreign Minister Penny Wong says Australia is "alarmed" by the escalation in tensions between Israel and Iran.

Australia and South Korea on Sunday urged Israel and Iran to exercise restraint following fresh attacks against each other, according to local media reports. Australia's Foreign Minister Penny Wong urged Israel and Iran to "not escalate" a "perilous" situation that could affect the wider Middle East.

The upgraded travel warning comes after Iran retaliated against an Israeli attack — part of an operation that will last "as many days as it takes", to end what Israel says is Iran's nuclear threat.

Despite not relying on Iran for its oil supplies, petrol and other prices in Australia will rise due to the global impact of the Israel–Iranian war.

Explosions have been heard in Iran with Israel claiming it has attacked the country’s capital Tehran. Israeli Defence Minister Israel Katz announced a “special situation” in Israel. He said its schools would be closed on Friday.

President Trump did warn of a possible strike, but the press reports made it seem as if a strike was not imminent. The dollar is stronger against all the G10 currencies and most emerging market currencies;

Secretary of State Marco Rubio condemned five nations that imposed sanctions on two controversial Israeli officials and called for a "reversal of the sanctions."

Australia's Prime Minister Anthony Albanese said condemnation by the U.S. and Israel of sanctions imposed on two far-right Israeli cabinet ministers was "predictable", and that the two men had impeded a two-state solution.

Israel and Iran bombarded each other for a third day, with international concern growing that the conflict will spread across one of the world’s key oil-producing regions.