PM calls for calm amid Iran war, uncertain economic future
Prime Minister Anthony Albanese urged Australians to spend the Easter weekend as normal but warned of tough times ahead and tougher fuel-saving measures in a rare address to the nation to prepare the public for a prolonged economic shock caused by the war in Iran.
Albanese’s message to the nation on Wednesday night will be followed by a speech to the National Press Club on Thursday, in which he will pledge $1 billion in interest-free loans to businesses struggling with recession fears.
Albanese, who is under project leadership pressure and has calmed down after weeks of panic buying, will use the global oil shock to advance his vision of overhauling Australia’s economic model by subsidizing critical industries and traditional manufacturers.
Albanese will promise to produce his most ambitious budget, linking the manufacturing agenda to social cohesion and “progressive patriotism”, opening the door to potential state investment in oil refineries and increasing the country’s low fuel stock.
Although the Prime Minister’s Press Club address was planned weeks ago, he decided this week to use his address to the nation to speak directly to voters about the war, opting for a somber speech that marked a significant change from more optimistic messages earlier this week.
“The coming months may not be easy. I want to be frank about that,” Albanese said in a three-and-a-half minute speech broadcast at 7pm on Wednesday, the first national address since Scott Morrison’s pandemic message on March 12, 2020, days before the start of nationwide lockdowns.
Emphasizing that Australia is not actively participating in the war after weeks of increasing disappointment with the Trump administration, Albanese said that Australians should “continue their business and lives normally” during Easter.
In response, he laid the foundation for tougher measures that could be taken with state premiers in the coming weeks if the supply of oil tankers slows down due to the war.
“If you’re hitting the road, don’t buy more fuel than you need, refuel as you normally would,” he said. “And if you can take the train, bus or tram to work in the coming weeks, do so.”
“This builds up our reserves and saves fuel for people who have no choice but to drive.”
Albanese, US President Donald Trump and British Prime Minister Keir Starmer announced that they would speak directly to their people on Wednesday, underlining the growing public concern about the global oil crisis triggered by US and Israeli attacks on Iran and Tehran’s decision to blockade the Strait of Hormuz.
Opposition Leader Angus Taylor said Albanese’s address to the nation was merely a “repeat of Monday’s press conference” and lacked the detail Australians needed.
“We need clarity, we need detail, and we need a plan,” he said.
While the Trump administration has sent signals through Secretary of State Marco Rubio that the war could end in the coming weeks, reports have suggested that the United Arab Emirates is willing to use force to help the United States open the strait through which 20 percent of global oil supplies pass.
Australian state and territory leaders have agreed a phased plan to save fuel that would only require rationing if supply dwindles. Fuel supplies increased last week as the government helped procure additional tankers.
In his speech on Thursday, Albanese will echo the language of Chancellor of the Exchequer Jim Chalmers on May’s budget, declaring it will be the government’s “most important budget and most ambitious budget to date”.
Albanese will talk about his bid to find savings as economists urge Labor not to raise inflation by adding more stimulus after introducing a temporary tax cut on fuel. He will concede that further cost-of-living aid may be required, potentially undermining the fight against inflation aimed at protecting households from a war-induced downturn.
“Our number one priority will continue to be helping people with their living costs, even as we plan and build for this stronger, more resilient future,” Albanese will say, as Labor decides whether to launch a campaign on tax reform as voters head into an anxious time.
“This is the balance we will strike.”
While US and Israeli attacks on Iran have highlighted Australia’s ability to fend for itself in times of conflict, Albanese has opened the door to boosting the country’s low fuel reserves and increasing subsidies for critical sectors such as metals and fertilisers.
Labor is pumping billions of dollars into struggling foundries through its $23 billion Made in Australia Future programme; While it has faced criticism from some economists and free-market advocates, it has won praise from unions committed to revitalizing the industry.
Albanese will argue these reforms are key to making Australia safer as the world is roiled by conflict.
“We will not be able to create the same prosperity or create the same opportunities if we continue to rely on an economic model designed at a different time and built for a more predictable world,” the Prime Minister will say, citing the mantra of “progressive patriotism” as he links the economic program to national security and social cohesion.
“There will always be someone somewhere else who will sell us what we need cheaper than what we produce ourselves.”
The $1 billion loan program for businesses builds on an announcement Chalmers made earlier Wednesday.
The treasurer pushed back on economists’ fears of stagflation and said the government was keen to avoid Covid-style measures. He announced a relief package for small businesses, including the cancellation of interest and penalties decided by the tax office. The government said the program would help trucking businesses, fertilizer companies and others.
“There is a greater than usual amount of global economic uncertainty,” Chalmers said. “We understand that there are extreme pressures on growth and significant pressures on inflation.”
Opposition Leader Angus Taylor questioned Albanese’s decision to make a television speech broadcast in prime time by television networks, suggesting the government may have received bad news on the oil supply issue.
“Why are they saying there is more fuel in the supply chain than before the crisis? There are mixed messages. There is a complete lack of transparency here,” he said.
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Paul Sakkal is the Chief Political Correspondent. He has previously covered Victorian politics and won the Walkley award as well as the 2025 Press Gallery Journalist of the Year award. Contact him securely on Signal @paulsakkal.14.Connect with: X or email.
James Massola is the chief political commentator. He was previously national affairs editor and Southeast Asia correspondent. He won the Quill and Kennedy awards and was a Walkley finalist. Connect securely to Signal @jamesmassola.01Connect with: X or email.
