Iran rejects peace deal

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.

The American president has asked NATO to help secure the Strait of Hormuz.

As the war in the Middle East continues, the Federal Government is set to release hundreds of millions of litres of fuel from Australia's national stockpiles, as farmers and motorists complain of shortages and soaring prices.

The price of oil has continued to rise as emergency reserves are released around the world. The International Energy Agency, agreed to release 400 million barrels of oil in an effort to maintain stable flow of fuel to try and prevent further price surges.