Prime Minister Anthony Albanese has welcomed the ceasefire announcement, saying Australia had been calling for de-escalation "for some time".
"Australia welcomes the agreement by the United States, Israel and Iran to a two-week ceasefire to negotiate a resolution to the conflict in the Middle East," a combined statement from Albanese and Foreign Minister Penny Wong read.
"The Australian government has been calling for de-escalation and an end to the conflict for some time now."
"Iran's de facto closure of the Strait of Hormuz, coupled with its attacks on commercial vessels, civilian infrastructure, and oil and gas facilities, is causing unprecedented energy supply shocks and impacting oil and fuel prices."
Prime Minister Anthony Albanese said Australia welcomes the ceasefire agreement. Source: AAP / Mick Tsikas
"We have been clear the longer the war goes on, the more significant the impact on the global economy will be, and the greater the human cost."
"Australia has been working with international partners in support of diplomatic efforts to reopen the Strait of Hormuz so critical supplies can flow to those who need it, including the most vulnerable."
The statement thanked mediators Pakistan, Egypt, Türkiye and Saudi Arabia for "advancing de-escalation efforts".
"Australia wants to see the ceasefire upheld and a resolution to the conflict," the statement read. "We continue to call on all parties to uphold international humanitarian law and protect civilian life."
— Alexandra Koster