The Sydney Morning Herald logo
The Sydney Morning Herald logo
Advertisement

Australia news as it happened: Iran warns Trump’s ‘Project Freedom’ on Strait of Hormuz would break ceasefire; Chalmers flags intergenerational reform in federal budget

Daniel Lo Surdo, Ellen Connolly and Sherryn Groch
Updated ,first published
Pinned post from 5.30pm on May 4, 2026
Go to latest

What we covered today

By Sherryn Groch

Thanks for following our rolling coverage of breaking news from Australia and around the world.

Here are the main things we covered today:

  • Tensions over one of the world’s most important shipping lanes are on a knife’s edge as Donald Trump’s new operation to “guide” ships through Iran’s blockade of the Strait of Hormuz, “Project Freedom”, risks tearing apart a fragile ceasefire.
  • Iran warned US military not to enter the strait but said it was reviewing Washington’s reponse to its own 14-point proposal to end the conflict - and reopen global trade through the strait.
  • Japan’s military will expand the test-firing of missiles and other advanced weapons in Australia as part of agreements struck during a visit to Canberra by Japanese Prime Minister Sanae Takaichi today.
  • As a former senior defence official called for Australia to consider leasing Japanese submarines as a “plan B” in case the AUKUS pact collapses, Foreign Minister Penny Wong insisted the government was committed to the plan to acquire nuclear-powered submarines from the US and the UK.
  • Police charged more than a dozen people over the riot that broke out in Alice Springs last week as the community reels from the abduction and murder of five-year-old girl Kumanjayi Little Baby.
  • Treasurer Jim Chalmers questioned how effective a cut to the tobacco excise would be in tackling Australia’s illicit tobacco trade, as a Senate inquiry into the multibillion-dollar black market began.
  • Meanwhile, speculation continued to swirl around the federal budget, including a potential capital gains tax discount and negative gearing reform. Chalmers said the budget would be calibrated to address intergenerational inequity and inflationary pressures – and fended off suggestions he is about to break promises.
  • The Geelong fuel refinery damaged in a major blaze last month is expected to be fixed in six weeks, and fire crews have declared there is no contamination risk to the community, in a development that may ease concerns about national petrol stocks as the war in Iran continues.

This concludes our coverage for today.
We will resume our rolling news coverage early tomorrow morning.
There will also be rolling coverage of day two of the Royal Commission on Antisemitism.

Latest Posts

How this key Australian refinery is faring after monster blaze

By Sherryn Groch and Simon Johanson

Firefighters have handed back control of the Geelong fuel refinery damaged by a massive blaze last month, as the company running it says the site is expected to be fixed within the next six weeks.

The fire, sparked by an equipment fault, raised the stakes over concerns of a national fuel shortfall as the war between the US and Iran raged and the closure of the Strait of Hormuz choked global supply.

On Monday, Fire Rescue Victoria said “comprehensive air quality, surface and water run-off testing” at the refinery “confirmed there were no contamination concerns for the community”.

Investigations into the cause of the fire are still under way, and may take several months to complete, with testing of alarms at the refinery also set to begin over the coming weeks. “As part of this work, [fire crews] used remotely piloted aircraft ‘drones’ to safely capture vision within the damaged part of the plant,” Fire Rescue Victoria said today.

Jet fuel and diesel at the refinery are still being produced at about 80 per cent of capacity and, when the repair works are completed in June, owner Viva Energy said it expected petrol production to return to 90 per cent of capacity.

Before the blaze, Viva had been seeking to produce as much fuel as possible to help Australia deal with the war’s impact on oil markets. The refinery accounts for 50 per cent of Victoria’s daily fuel usage and 10 per cent of the national total.

Ships told to reroute around sea mines as ‘Project Freedom’ begins

By Sherryn Groch

Ships stranded in the Iran-blockaded Strait of Hormuz have been told to reroute and work with Omani authorities as the US begins its “Project Freedom” operation to free tankers in the crucial global shipping lane.

Authorities said Monday that an “enhanced security area” south of typical shipping routes had now been set up due to concerns about sea mines laid as Iran choked off free passage in the strait over its war with the US.

Since the new operation was announced by Trump on social media Sunday, US Central Command has confirmed it will involve 15,000 military personnel, and more than 100 land and sea-based aircraft, as well as guided-missile destroyers, warships and drones. But the Pentagon did not immediately answer questions about how they are being deployed.

Thousands of seafarers stranded in the strait since the war began have described watching intercepted drones and missiles explode over the waters as their vessels run low on drinking water, food and other supplies.

Iran state media has said Tehran is now reviewing the US response to its 14-point proposal to end the conflict and reopen the strait, after the US begun its own naval blockade in the area to hit Iran’s economy.

In this photo released by Iran’s semi-official Tasnim News Agency, an Iranian Revolutionary Guard speedboat approaches a cargo ship in the Strait of Hormuz on April 21.AP

With AP

Iran’s threat for Trump as ‘Project Freedom’ in Hormuz strait set to begin

By Sherryn Groch

With Donald Trump’s “Project Freedom” set to begin in a matter of hours to guide stranded fuel tankers through the Strait of Hormuz, Iran has warned US forces not to enter the key global shipping lane.

Trump announced the operation would begin on Monday morning Middle East time), involving some 15,000 military personnel. But Iran’s own military has warned it will “respond harshly” to any American interference in the strait, and treat it as a violation of the fragile ceasefire currently still in place between the two nations.

Separately, Iranian state media said Washington had now delivered its response to Iran’s 14-point peace plan and that Tehran was now reviewing it. There was no immediate confirmation from the White House that the Trump administration had responded to the Iran proposal.

Two tankers have been hit by projectiles in the Strait of Hormuz in recent hours, Britain’s maritime agency has reported as it warns the security threat there remains critical. Thousands of seafarers have been stranded on vessels and global fuel markets squeezed by Iran’s blockading of the strait since war broke out with the US.

US President Donald Trump arrives on Air Force One at Joint Base Andrews, Maryland, on Sunday (US time).AP

With Reuters

Advertisement

‘Quasi allies’: Japan to test more advanced weaponry in Australia

By Matthew Knott

Japan’s military will expand the test firing of missiles and other advanced weapons in Australia as part of agreements struck during a visit to Canberra by Japanese Prime Minister Sanae Takaichi today.

As a former senior defence official called for Australia to seek to lease Japanese submarines as a “plan B” in case the AUKUS pact falters, Foreign Minister Penny Wong insisted the government was committed to the plan to acquire nuclear-powered submarines from the US and the UK.

Japanese Prime Minister Sanae Takaichi and Prime Minister Anthony Albanese make joint media statements at Parliament House today.Alex Ellinghausen

After meeting Prime Minister Anthony Albanese at Parliament House, Takaichi hailed the deepening ties between Australia and Japan, saying the two countries were “advancing pioneering security co-operation at a level that could be described as quasi-allies”. Takaichi said they would upgrade their defence partnership by “taking advantage of the geographical characteristics of Australia”.

A joint leaders’ statement said the “testing of new equipment, advanced weapons and emerging technologies” would be a priority. The leaders also agreed to work together on critical minerals, energy security and cybersecurity.

Takaichi, Japan’s first female prime minister, plans to use her parliamentary super-majority to amend Japan’s post-war constitution, possibly renouncing a clause committing the nation to pacifism. In recent years, Japan has conducted live-fire demonstrations of its surface-to-ship missiles in the vast geography of Australia.

Read more from our foreign affairs and national security correspondent, Matthew Knott here.

How two German millionaires saved Timmy the whale

By Sherryn Groch

Now for some good news making waves around the world. After more than a month stranded off the coast of Germany, a humpback whale has been successfully guided back into the North Sea – after a private rescue mission bankrolled by two German millionaires.

The whale, nicknamed “Timmy” by German media, was spotted in shallow waters near the coastal city of Wismar on the Baltic Sea coast on March 3, far from its natural habitat in the Atlantic Ocean. The health of the juvenile male deteriorated as he became stranded repeatedly but initial efforts to coax Timmy to deeper waters, livestreamed around the globe, all failed.

While scientists said transporting the animal via rescue barge would be too much for Timmy, a crew of private rescuers, including two millionaires, hatched an eleventh-hour plan to save him, which the German government signed off on.

Timmy the humpback being transported towards the North Sea in a flooded cargo ship.AP

Timmy was released into open ocean over the weekend, 70 kilometres off the coast of Denmark, and the mission declared a success, though questions have been raised about how many experts were on board the vessels involved at the time. Drone footage later showed a whale spouting a fountain of water near the rescue barge as he swam free.

With ‘Project Freedom’ about to begin, what is happening in Strait of Hormuz?

By Sherryn Groch

Tensions over one of the world’s most important shipping lanes are on a knife’s edge as an American operation to “guide” ships through Iran’s blockage of the Strait of Hormuz – due to begin in a matter of hours –risks tearing apart a fragile ceasefire.

Since war broke out between the US and Iran, an Iranian blockage of the strait has choked global oil supplies, sending shockwaves through economies and leaving thousands of seafarers stranded on oil vessels. Britain’s maritime trade agency warned today that the security threat level in Hormuz remains critical, after two ships were hit by projectiles in recent hours.

US President Donald Trump had earlier announced a new American effort, called “Project Freedom”, to guide stranded ships through the maritime passage. The operation, due to begin shortly (“Monday morning, Middle East time”, according to the White House), is set to involve 15,000 personnel, and more than 100 land and sea-based aircraft, as well as guided-missile destroyers, warships and drones.

A man apparently fishes as bulk carriers, cargo ships, and service vessels line the horizon in the Strait of Hormuz off Bandar Abbas, Iran.AP

Iran, meanwhile, has warned that any US interference in the strait will be considered a violation of the current ceasefire.

Trump has said he will review an Iranian “14-point” plan to end the war within the next month, which will require both sides to allow free passage again in the strait.

Advertisement

Hormuz impasse brings another shipping lane into focus. This one’s closer to home

By Zach Hope

The Malacca Straits Mosque, sometimes called the “floating mosque” because it extends over the water, offers fine views of one of the busiest maritime choke points in the world.

Tourists in the storied Malaysian port town that lends the strait its name enjoy the mosque’s back deck at sunset, watching the monolithic container ships that trundle through placid waters, and the changing colours of the sky.

Sunset over the Malacca Straits Mosque.Getty Images/Flickr RF

If you were to stand here for a year with binoculars, you would see a quarter of global seaborne trade pass by. More crude oil comes through this 1110-kilometre passage each year than even the Strait of Hormuz.

Bound by Indonesia, Singapore and Malaysia, Malacca has linked the East and West for centuries – and more than 40 per cent of Australia’s imports and about two-thirds of its exports pass through this narrow stretch of water still today.

Read more from our South-East Asia correspondent, Zach Hope, on how the war in Iran is throwing new focus on the security vulnerabilities of other key shipping lanes around the world, such as this one.

Police charge 13 over Alice Springs rioting in wake of Little Baby’s death

By Sherryn Groch

Police have charged more than a dozen people over the riot that broke out in Alice Springs last week as police arrested a man for the murder of five-year-old girl Kumanjayi Little Baby.

A crowd of hundreds converged on Alice Springs Hospital, where Jefferson Lewis was taken following his arrest on Thursday night, and police fired tear gas and rubber bullets as tensions rose.

Loading

Northern Territory Police said 13 people had been charged today over the riot, after a woman was charged on Saturday with setting a police car on fire during the unrest. CCTV footage had helped detectives identify alleged offenders, police said, including those who ransacked a Shell service station, and more arrests are expected to follow.

The community has been torn apart by grief after Kumanjayi Little Baby was abducted from her home at the Old Timers Camp last month, and her tiny body found in a river bed.

Rioting broke out Thursday as some locals called for Lewis to face traditional “payback” community justice rather than be taken into custody.

Deputy at anti-corruption watchdog steps down

By Brittany Busch

The deputy commissioner of Australia’s federal anti-corruption watchdog, Nicole Rose, has resigned from her position.

Attorney-General Michelle Rowland thanked Rose for her service at the National Anti-Corruption Commission since being appointed in 2023. “Ms Rose has made an invaluable contribution to the establishment of the NACC as an inaugural deputy commissioner,” she said.

Rose will finish her role in July.

Advertisement