Dezi Freeman shot dead by police

Iran is warning the United States that if ground troops enter the war in Iran none will return home alive.

After the biggest manhunt in Victorian history, police have shot dead fugitive Dezi Freeman who was wanted for killing two police officers last year.

Tropical Cyclone Narelle has made landfall on WA's north west coast.

Iran has rejected a U.S peace proposal and countered with its own terms to bring the conflict to an end, including that it be allowed to control the Strait of Hormuz.

Australia and the European Union have signed a free trade agreement and a defence and security pact.

The Head of the International Energy Agency is warning that as the Middle East crisis deepens, no country is immune from the worst fuel crisis in decades.

Communities on Queensland's north-west coast are taking shelter as tropical cyclone Narelle moves across the country's north.

The Prime Minister has met with state and territory leaders and announced the setting up of a new fuel supply taskforce to co-ordinate a national response to the oil crisis.

Iran has attacked an airbase in the United Arab Emirates where Australian soldiers are stationed but none were injured.

In a blow to everyone struggling to pay off a mortgage and deal with rising fuel costs, the Reserve Bank has increased the cash rate 4.1 per cent.