The Greens say it's clear Australia has become a target in the Middle East war, after an Iranian strike on a joint military base.
The Al Minhad Air Base was struck this morning, with minor damage to an accommodation block and medical facility in the Australian section of the base.
No Australians were harmed.
Treasury modelling shows the war in the Middle East could push Australia's inflation rate above five per cent this year.
Treasurer Jim Chalmers will give a speech tomorrow, where he's set to outline how his department has been monitoring and modelling potential impacts of the war.
In all scenarios - which look at oil costs plus coal and fertiliser prices - inflation rises, and growth is hit.
In his speech, Jim Chalmers will say it means the prospect of inflation peaking in the high fours, or even higher, this year is "very real."
Tropical Cyclone Narelle has been upgraded to a Category 3 system as it approaches the far north Queensland coast.
It's now 780 kilometres east-north-east of Cooktown and is tracking towards Cape York.
The cyclone is expected to reach Category 5 before making landfall between Lockhart River and Port Douglas on Friday as a Category 4 storm.
It'll then head west into the Gulf of Carpentaria and towards the Northern Territory.
Australia