AS IT HAPPENED: Ex-ally urges Trump to get out 'now, before we lose more lives'; Trump threatens to bomb Iran 'back to the Stone Age'; Albanese announces $1 billion aid for business

Thanks for following our coverage of the conflict in the Middle East.

Here is a recap of today's key developments:

- Prime Minister Anthony Albanese has detailed a $1 billion plan to help fuel-impacted businesses at the National Press Club today.

- US President Donald Trump addressed the American public in a short, 20-minute speech addressing the country's involvement in the Iran war.

- New research suggests Australia's economy could suffer a sharp recession if there is a prolonged Iran war.

- In the wake of Trump's threat to pull the US from NATO, the military alliance's top official has announced he'll visit the US next week.

- Israel's military has announced an overnight naval strike on Beirut has killed a top Hezbollah commander.

- President of Iran Masoud Pezeshkian has issued an open letter to the USA, asking residents "is war in your interests?"

The head of communications for Iran's President Masoud Pezeshkian has dismissed a speech by US President Donald Trump as "insane".

Associated Press reports Elias Hazrati made the comment on Iranian state television, insisting Trump's remarks "boosted our nation's integrity".

"Trump is tangled with insane remarks," he said.

"Today, Iran is managing the Strait of Hormuz powerfully."

As he concluded his address, Taylor said decline was not inevitable and damage was not irreperable.

"With courageous leadership, we can protect our way of life," he said.

"With strong leadership we can restore our way of living.

"With inspired leadership we can rediscover confidence in ourselves at a time when we must look after ourselves and put Australia first."

Taylor has challenged the prime minister to do three things.

"First, he must outline how he is going to get fuel to where it's needed in the short-term," Taylor said.

"Second, the prime minister must outline a proper longer term plan, so Australia never finds itself in this position again.

"We must unlock the full potential of our natural resources by fast-tracking exploration and projects across the country, we must dig and we must drill.

"We need more Australian oil for Australians, we have the resources beneath our feet to secure our future.

"Third, the prime minister and treasurer must use the upcoming budget not just to respond to this crisis but to set our country up for the future."

Today Albanese detailed a $1 billion plan to help fuel-impacted businesses.

He also outlined the government's plan to tackle increased costs triggered by the war.

Opposition Leader Angus Taylor has taken aim at Prime Minister Anthony Albanese following his national address last night.

"The fuel crisis we face began about five weeks or so," Taylor said, in a right of reply speech broadcast on the ABC.

"Australians deserve two things in this difficult period. You deserve clarity and leadership.

"Regrettably both have been absent from our government."

Donald Trump's former US counter terrorism chief Joe Kent has urged the president to end the conflict "before we lose more lives".

Following Trump's national address, Kent said the US did not honour its fallen "by getting more of our best men and women killed in the Middle East".

"We honor our fallen by learning from our past and only shedding American blood in defence of our nation," he said on X.

"The best time to get out of a war of choice is now, before we lose more lives."

Kent resigned from the Trump administration over the Iran war, saying the Middle East nation posed "no imminent threat".

Israel has intercepted a fresh missile attack from Iran, according to the country's military.

"A short while ago, the IDF identified missiles launched from Iran toward the territory of the State of Israel," the Israel Defence Force said on Telegram.

"Defensive systems are operating to intercept the threat."

The military has alerted residents to several missile barrages today, warning those in the area to shelter in a protected space.

Australian milk suppliers face an increase in the cost of milk bottles and lids due to a domestic resin shortage linked to the global fuel crisis.

Nick's Food, Milk and More general manager Nick Viropoulos faces an increase from Monday after receiving a letter from his milk supplier yesterday.

"They're talking about double the cost to produce the milk bottle and its lid," Viropoulos told Sydney radio station 2GB.

"This would probably translate to, in the early stages, somewhere between eight and 10 cents a litre.

"Equivalent to 20 cents a bottle will be the initial impact, so heaven knows where it's going to end up."

He said it was an Australian shortage, rather than a global shortage, as Australia relies on China for its resin production.

"Our only source of resin for blowing milk bottles and associated plastic bottles for drinks and beverages comes from China," he said.

"Now that there's a shortage of petroleum going all over the world, they're keeping the resin for their domestic market and they can't send any to Australia.

"Unfortunately the producers in Australia are forced to air freight it out of the USA at US dollar rates."

New research suggests Australia's economy could suffer a sharp recession if there is a prolonged Iran war.

Oxford Economics Australia is predicting the conflict will last for about two months, keeping the Strait of Hormuz closed until the end of April, based on current analysis.

The economic advisory firm anticipates traffic through the Strait will rise to around 50 per cent in May and June before gradually returning to full capacity over the next six months.

However, economist Harry McAuley is warning opportunities for de-escalation are narrowing, risking a more prolonged conflict.

"Our prolonged war scenario suggests world GDP growth would slow to 1.4 per cent in 2026, 1.2ppts below our current baseline, before recovering to just 2.1 per cent in 2027," McAuley said.

"Oil prices would stay above $150 per barrel for four months alongside shortages of refined energy products, pushing global inflation to 7.7 per cent, close to the 2022 peak.

"In this scenario, the Australian economy would suffer a sharp recession.

"Using our global economic model, which now includes Australian states and territories, we estimate GDP would contract 0.3 per cent q/q in Q2 as inflation soars and fall a further 0.8 per cent q/q in Q3 as fuel rationing begins.

"Excluding the pandemic, this would be the sharpest quarterly fall since the early 1990s."

The Israel Defence Force said it has worked to intercept multiple missiles from Iran today.

The military said it had identified missiles launched toward the territory of the State of Israel.

Residents in the area have been told to enter a protected space several times today.