President Donald Trump has escalated his confrontation with Iran, announcing an expansion of the US naval blockade into the Indo-Pacific to intercept "dark fleet" vessels and contraband.
The move, intended to starve Tehran of resources ahead of a looming ceasefire expiry, coincided with a renewed public lashing of the Albanese government for its refusal to assist in reopening the Strait of Hormuz.
Trump expressed sharp dissatisfaction with Australia's contribution, dismissing Canberra's plan to raise defence spending to 3% of GDP as insufficient against White House demands for 3.5%.
"I’m not happy with Australia because they were not there when we asked," Trump told reporters, specifically citing the strategic waterway.
In Washington, Treasurer Jim Chalmers described the global economy as facing a "dangerous moment" due to soaring energy prices and supply chaos.
While acknowledging the President’s remarks were consistent with past rhetoric, Chalmers warned that the end of the conflict "can't come soon enough" to stabilise global markets.
Meanwhile, US military commanders confirmed that warships will now seize "conditional contraband"—including metals and electronics—in the Pacific to prevent resupply efforts.
The expansion places regional powers like China on notice as the maritime exclusion zone widens.
Despite the hardline stance, Trump maintains a deal is "very close," dangling the prospect of a Pakistani-brokered agreement to avoid "nuclear holocaust", even as the Vatican and Canberra remain wary of the administration’s aggressive "good cop, bad cop" diplomacy.