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Defence Minister Richard Marles has confirmed Australia is not participating in the current military actions against Iran.
Mr Marles says Australia is monitoring the U-S and Israeli strikes very closely.
He is avoiding commenting on the legality of the strikes and instead focuses on the security threats posed by foreign nuclear ambitions.
"Well, I mean, what is unlawful is for Iran to be seeking to acquire a nuclear weapon capability. I mean, that flies in the face of the Non Proliferation Treaty and the international regime which is in place to limit the expansion of nuclear weapons."
As US President Donald Trump warns of a big wave of further attacks on Iran, the U-N Security Council is under pressure to act over the US and Israel's strikes.
Iran's UN ambassador, Amir Saeid Iravani says the strikes on the weekend were unlawful.
He wants the UN to impose consequences.
Israel has attacked Lebanon in response to strikes by Hezbollah and Tehran is continuing to launch missile and drone attacks on Gulf states including Dubai and Bahrain.
Mr Iravani is defending Iran's actions.
“We are not attacking the interests of other neighbouring countries. We are defending ourselves. We are targeting the facilities and the bases and assets of the United States in this country, in those countries, which is out of the control of the host countries.”
The Canadian Prime Minister Mark Carney is in Australia for a high-profile three-day official visit.
He is meeting with Prime Minister Anthony Albanese in Sydney and Canberra to discuss regional security and critical mineral agreements.
These talks are focusing on strengthening economic ties and addressing the conflict in Iran.
Australia looks set for petrol price rises as expanding conflict in the Middle East raises oil prices and threatens a key supply route through the Strait of Hormuz.
Around 20 per cent of global oil passes through the strait, which borders Iran on one side, providing the main export route for energy from the Gulf states.
NRMA spokesperson Peter Khoury says local price hikes are likely to flow through to Australian in roughly one week.
"There is no doubt that there will be an effect here at home. What we are expecting, based on what we're currently seeing with markets is a jump of around ten percent, initially, with oil prices. We are waiting to see how tapis our regional benchmark trades, but the expectation, seeing what's come out of Europe is an increase of about 10 per cent initially, but obviously what happens in the coming days and weeks will be critical."
100 days out from the FIFA World Cup in Los Angeles, Iran's place in the tournament is in doubt.
For the first time in history, two qualifying nations are at war with one another, with the United States also hosting the competition in a little over three months.
A rapidly evolving conflict in the Middle East, triggered by US and Israeli attacks on Iran, has also raised concerns World Cup games could become a terrorism target.
The 23rd World Cup will be co-hosted by the United States, Canada and Mexico from June 11 to July 19.
