Australian Prime Minister Anthony Albanese is weighing additional cost-of-living measures, including a possible extension of the $2.5 billion fuel excise cut, in response to voter concerns following the recent federal budget. These considerations come amid broader global developments and domestic economic pressures.

On Monday, former U.S. President Donald Trump announced that a formal agreement with Iran would be finalized during a historic meeting in Geneva later this week. The deal, described as a significant step toward peace, aims to end military hostilities, including in Lebanon, and to reopen the Strait of Hormuz for toll-free oil shipments, a critical route for global energy supplies. Trump emphasized that this breakthrough would allow oil to "flow," signaling relief after months of elevated oil prices and disrupted supply chains worldwide.

The signing is scheduled for Friday in Geneva, where U.S. Vice President JD Vance is set to meet Iranian officials including parliamentary speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi. Pakistani Prime Minister Shehbaz Sharif confirmed the forthcoming peace agreement on social media, highlighting an immediate and permanent cessation of military operations across all fronts. While the full text of the agreement remains unpublished, it reportedly sets a framework for more detailed negotiations on Iran’s nuclear program over the next two months.

Speaking in Canberra, Albanese welcomed the progress toward peace but cautioned that recovery and stability for Australians would take time. He acknowledged ongoing challenges such as high inflation and rising unemployment, as well as expectations that the Reserve Bank of Australia may maintain its current interest rate of 4.35 percent in its upcoming policy meeting. These factors have prompted economists to warn against additional government stimulus, cautioning that further spending could trigger another rate hike and complicate inflation control.

“Many presidents have attempted to secure peace with Iran and failed before me,” Trump said on his social media platform, framing the agreement as a historic diplomatic achievement. Meanwhile, Albanese signaled that his government is carefully evaluating cost-of-living interventions, with particular attention to the impending expiration of the fuel excise cut at the end of June. “We will make our assessment over coming days,” he stated, noting that the government’s expenditure review committee would meet soon to consider the issue.

While Albanese left open the possibility of extending the 26.3 cents-per-litre fuel excise reduction, he maintained a cautious stance, balancing the need for relief with economic prudence in the face of ongoing global and domestic uncertainty.