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.

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.

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.

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.

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

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;

Israel and Iran opened a new chapter in their long history of conflict when Israel launched a major attack with strikes early Friday that set off explosions in the Iranian capital of Tehran. Israel said it targeted nuclear and military facilities,