Australian Prime Minister Anthony Albanese says he will continue engaging respectfully with U.S. President Donald Trump about the Iran War amid concerns of global inflation.
The prime minister responded to comments about the next Quad Summit, due to be in the Philippines next week.
“I engage with leaders in a respectful way,” Albanese told reporters on the morning of Nov. 9.
“Obviously, that is an issue that will be a topic, but I’ll engage constructively as I’ve developed a constructive relationship with President Trump.
“Australia has for some time now repeatedly said that there is a real impact of the conflict in the Middle East. Everyone knows that’s the case.”
Albanese also maintained the Iran War was having a global impact on inflation.
“We have seen inflation rise around the world,” he said.
“We saw last week interest rates increase, not just in Australia, but the Bank of England for the first time in a long while, increased interest rates and the governor of the central bank there made it very clear what the reason for that was and suggested that if the war in Iran and that conflict was not ended, then there would be further pressure on.
“I accept and my government accepts completely that there are pressures on Australian families. We accept that as well, that we need to find savings in the Budget.”
Questions Over War’s Impact on Economy
Last week, Albanese brushed off concerns from Reserve Bank of Australia (RBA) Governor Michele Bullock that domestic pressures—not the Iran war—were the key driver behind a recent interest rate hike from 4.60 to 4.85 percent.
“Part of the reason for inflation staying higher for longer is global oil prices,” Bullock said.
“However, I want to be very clear that we are not tightening monetary policy because of the direct impact of oil prices on inflation.”
But Albanese said the war was putting sustained upwards pressure on inflation.
“It’s weighing on growth and its end can’t come soon enough,” he said.
The Coalition’s views align with the RBA and said the Iran War is not the sole driver of inflation in Australia.
In a statement in late October, Shadow Treasurer Tim Wilson said the International Monetary Fund (IMF) found Australia’s growth forecast was 1.6 percent, with unemployment forecast for a 4.7 percent peak.
“The Treasurer [Jim Chalmers] blames the Middle East, but the first rate rise this year came a full month before the first bomb dropped on Iran,” he said.
The current war with Iran started on Feb. 28, 2026, amid escalating disputes over nuclear capability.
