The Israeli Ambassador to Australia has rejected calls for de-escalation after Foreign Minister Penny Wong said the Albanese government urged “restraint”.

Australia has backed Israel's right to self-defence after strikes on Iranian nuclear operations and military leaders that have sparked a barrage of retaliatory fire. Iran and Israel have targeted each other with missile and air strikes after the latter launched its biggest-ever air offensive against its long-time foe.

Former Olympian and senator Nova Peris, along with other Australians, sought shelter in Israel after Iran launched missile attacks in retaliation for Israeli strikes on Iranian nuclear sites. Peris, part of a group including Indigenous leaders,

Prime Minister Anthony Albanese has declared Australia will not play a military role in the escalating conflict between Israel and Iran.

The upgraded travel warning comes after Iran retaliated against an Israeli attack — part of an operation that will last "as many days as it takes", to end what Israel says is Iran's nuclear threat.

Explosions have been heard in Iran with Israel claiming it has attacked the country’s capital Tehran. Israeli Defence Minister Israel Katz announced a “special situation” in Israel. He said its schools would be closed on Friday.

Australia's Prime Minister Anthony Albanese said condemnation by the U.S. and Israel of sanctions imposed on two far-right Israeli cabinet ministers was "predictable", and that the two men had impeded a two-state solution.

Secretary of State Marco Rubio condemned five nations that imposed sanctions on two controversial Israeli officials and called for a "reversal of the sanctions."

President Trump did warn of a possible strike, but the press reports made it seem as if a strike was not imminent. The dollar is stronger against all the G10 currencies and most emerging market currencies;

The Australian dollar falls heavily against the US dollar, losing 1 per cent against the greenback in the space of a couple of hours on the news of Israel's air strikes on Iran. The Aussie is often seen as a proxy for global financial and political instability.