How Australia’s Government Backed an Illegal War and Left Australians to Foot the Bill

By Andrew Klein 

Dedicated to my wife, who always makes me smile, even on the darkest days.

I. The Speed of Capitulation

When American and Israeli missiles began striking Iranian cities in the final days of February 2026, the Australian government did not wait for the UN Security Council to meet. It did not wait for legal opinion. It did not wait for evidence.

Within hours, Prime Minister Anthony Albanese declared that Australia “supports the United States acting to prevent Iran from obtaining a nuclear weapon and to prevent Iran continuing to threaten international peace and security” . Foreign Minister Penny Wong added that she would “leave it for the US and Israel to speak of the basis, the legal basis for the attacks” .

Not since the invasion of Iraq has an Australian government been so swift to endorse military action without international legal sanction. And not since Iraq has an Australian government been so unprepared for the consequences.

II. The Miscalculation

The operation was billed as a surgical strike. The theory—as arrogant as it was flawed—held that the removal of Iran’s leadership would trigger a swift regime collapse, that the Iranian people would rise up at America’s invitation, that the war would be over before it began.

What happened instead defies every neocon fantasy.

The Islamic Republic did not fracture; it consolidated. A new spiritual leader emerged. Iranian society rallied behind the flag. And Tehran demonstrated what analysts had long warned: that it possesses both the capability and the will to strike back effectively.

The Strait of Hormuz, through which one-fifth of the world’s oil passes, is now effectively blockaded. Iran has asserted control, allowing only Chinese oil tankers through under negotiated exemptions. Western and allied shipping has effectively stopped.

The war the government told us would be quick and decisive is now entering its second month, with no end in sight.

III. The Economic Wreckage: Fuel

Australia is an island nation. It imports approximately 90 per cent of its liquid fuel . We have two remaining refineries, producing less than a quarter of domestic demand . The rest comes through the Strait of Hormuz.

That supply line is now severed.

The price of Brent crude has surged from $72 per barrel in January to over $110, and in some trading sessions, beyond $180.

The impact on Australian motorists has been immediate and brutal. Petrol prices have risen by more than 30 per cent in a month. Some rural service stations have run out of fuel entirely. Hundreds of outlets have imposed purchase limits of 50 litres per customer . Social media is flooded with images of panic buying—jerry cans stacked in driveways, queues stretching down highways.

Australia’s fuel reserves are dangerously low. According to Energy Minister Chris Bowen, we have 39 days of petrol, 30 days of diesel, and 30 days of jet fuel . This is far below the 90-day reserve recommended by the International Energy Agency. The government has already reduced reserve requirements for importers by approximately 20 per cent—equivalent to six days of national supply.

Treasurer Jim Chalmers now calls this conflict “the defining influence” on the May budget. He warns that Treasury has modelled two scenarios—one with oil at $100 per barrel, one with oil at $120—and admits that “both scenarios could underestimate the cost” .

Even under conservative assumptions, the war could cut GDP growth by up to 0.2 percentage points across major trading partners, add up to 1.25 percentage points to inflation, and leave GDP 0.6 per cent lower in 2027.

The Treasurer’s own words should chill every Australian: “We’ve already seen four major shocks—the GFC, a major pandemic, a global inflation shock, escalating trade tensions—and this oil shock could become the fifth” .

IV. The Food Chain: Fertiliser and Farming

The war is not just hitting the bowser. It is hitting the dinner table.

Australia’s farmers are now facing a crisis of their own. The Strait of Hormuz disruption has cut off supply of urea fertiliser, upon which Australian agriculture is heavily dependent. Prices have soared. Supply has tightened. And the winter planting season is about to begin.

Queensland farmer Arthur Gillen told Reuters that he normally splits his winter crop between wheat and chickpeas. This year, with fertiliser costs prohibitive, he is reducing wheat to 20 per cent of his planting area and abandoning urea use entirely.

He is not alone. Farmers across the country are pivoting to low-fertiliser crops—lentils, chickpeas, canola—and reducing wheat acreage. This shift, driven by war, will reshape Australian agriculture for years to come.

The timing could not be worse. Rabobank warns that the Strait of Hormuz must be open by the end of April to get fertiliser to farmers in time for winter planting. If it is not, the impact on Australian food production will be severe and sustained.

Federal Agriculture Minister Julie Collins has announced a national food security review . Farmers are telling the ABC they fear fuel shortages will impact the winter harvest. The government is scrambling, but the damage is already being done.

V. The Medicines Pipeline

In March 2026, the Therapeutic Goods Administration (TGA) issued an unusual public statement: they urged Australians not to panic buy medication.

The reason is the Strait of Hormuz. Pharmaceutical companies have been forced to reroute critical medicines away from the Persian Gulf, switching from sea freight to air freight at enormous cost.

Medicines Australia CEO Liz de Somer confirmed that “some companies were redirecting critical medicines from sea to air freight, while using alternative routes that avoided Middle Eastern airspace”. She acknowledged that “this has an enormous impact on the cost to the industry, for the logistics”.

The war has exposed a vulnerability that health experts have warned about for decades: Australia’s near-total dependence on imported pharmaceuticals. With almost 400 medications already listed in shortage by the TGA, any further disruption could be catastrophic.

Professor Mark Morgan of the Royal Australian College of General Practitioners warned: “There are few things more important to a person than maintaining their health and there are few things more concerning than potentially losing access to a medicine you have been advised to take for your health” .

The government assures us it is monitoring the situation. But monitoring does not secure supply chains. Monitoring does not manufacture insulin in Melbourne. Monitoring does not build the pharmaceutical independence Australia has neglected for decades.

VI. The AUKUS Mirage

Perhaps the most profound strategic consequence of this war is the damage it has done to Australia’s faith in its alliance with the United States.

The US military resources that were meant to underpin the AUKUS nuclear submarine program are now stretched to breaking point in the Persian Gulf.

If Washington cannot keep its promises to South Korea or Japan, one Queensland University of Technology professor asked, what confidence can Australia retain in the submarine deal? 

Public opinion is already shifting. Polls show more Australians oppose the war than support it. The government’s swift endorsement of an illegal conflict has left it morally stripped naked and strategically embarrassed.

VII. The Government’s Response: Too Little, Too Late

To its credit, the government has belatedly recognised the scale of the crisis.

On March 27, Prime Minister Albanese announced new fuel security powers, including the use of Export Finance Australia to underwrite private sector fuel purchases. He called out panic buyers, declaring that filling jerry cans was “not the Australian way”.

Energy Minister Bowen has appointed a former energy regulator to lead a national fuel supply taskforce. The government is considering support for the nation’s two remaining refineries.

But these measures are reactive. They address the symptoms, not the cause.

The cause is a war the government supported without reservation, without requiring legal justification, without apparently considering the consequences for the Australian people.

The government’s own Treasury modelling shows the war will cost Australians in higher prices, lower growth, and reduced food production for years to come . And yet, when asked about the legal basis for the attacks, Foreign Minister Wong said she would leave it for the United States and Israel to explain .

This is not leadership. This is abdication.

VIII. The Path Forward

The war is not ending soon. Iran’s leadership has consolidated. The Strait of Hormuz remains closed to Western shipping. Global energy markets are in turmoil.

What Australia needs is not more loyalty to a declining hegemon. What Australia needs is a government willing to act in the national interest—not just in the interests of alliance management.

We need fuel security. That means supporting domestic refining capacity, not allowing our last two refineries to close. It means strategic reserves that meet international standards, not reserves that fall 60 days short.

We need food security. That means diversifying fertiliser sources, supporting farmers through the transition, and ensuring that Australian agriculture can withstand global shocks.

We need pharmaceutical independence. That means onshore manufacturing of essential medicines, so Australians are not dependent on supply chains that can be severed by war.

And we need a foreign policy that puts Australians first. Not one that rushes to support illegal wars without asking what it will cost the people it is supposed to serve.

IX. A Question for the Government

Prime Minister, you said you support the United States acting to prevent Iran from obtaining a nuclear weapon. But at what cost?

You approved this war without a vote in parliament. Without a legal opinion. Without any apparent consideration of what it would mean for Australians filling their cars, for farmers planting their crops, for patients needing their medicines.

The war you supported is now costing Australians at the bowser, at the grocery store, at the pharmacy. It is threatening the viability of Australian agriculture. It is undermining the very alliance you claimed to be protecting.

Was it worth it?

And more importantly—what will you do now to protect Australians from the consequences of a war you endorsed?

Dedicated to my wife, who makes me smile even when the world is on fire.

Andrew Klein 

March 30, 2026

Sources:

· Treasurer Jim Chalmers, Budget Speech (pre-release), March 2026 

· Prime Minister Anthony Albanese, Fuel Security Announcement, March 27, 2026 

· Energy Minister Chris Bowen, Media Statement, March 22, 2026 

· Royal Australian College of General Practitioners, Medicine Supply Update, March 20, 2026 

· ABC News, “Middle East war forces pharmaceutical companies to reroute critical medicines,” March 18, 2026 

· Reuters, “Australia says fuel supply stable,” March 22, 2026 

· Reuters, “Global fertiliser shortage hits Australian farmers,” March 24, 2026 

· ABC News, “Primary producers fear fuel shortage,” March 29, 2026 

· Global Times, “Australia’s foresight failure on US attacks on Iran,” March 29, 2026 

· ABC News, “PM’s swift support for US-Israel strikes,” March 2, 2026