AS IT HAPPENED: UAE closes airspace as precaution; Israel widens ground operations in Lebanon; Australia hasn't been formally asked to send warship

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Today's conflict was marked by escalating strikes in Iraq, Lebanon and the United Arab Emirates (UAE), which briefly caused airspace closures.

In Australia, the petrol shortage in regional areas remains unsolved as farmers ask the government for help.

The rest of the day has been dominated by domestic headlines concerning the cost of living, inflation worsened by the war and the recently-increased cash rate.

We will resume our live blog tomorrow.

On Australian soil, the Reserve Bank of Australia (RBA) surprised precisely no one by increasing the cash rate to 4.10 per cent.

Treasurer Jim Chalmers said the escalating conflict in the Middle East has contributed to inflation, which was already headed for troubled waters.

"The impacts of what we're seeing in that part of the world are already substantial, but we don't know yet how enduring those very substantial economic pressures will be," he said.

"It depends very heavily on how long the conflict in the Middle East continues for."

Footage on social media shows Iranian strikes lighting up the skies above the US Embassy in Baghdad.

Iraq's air defense systems have continuously fought an onslaught of strikes on the capital.

A drone hit a hotel in the city's fortified "green zone" earlier today, causing a small fire.

Although the UAE has lifted its airspace closure, escalating Middle Eastern tensions mean this could change again instantly.

The General Civil Aviation Authority (GCAA) initially confirmed the region's airspace was shut "amid rapidly evolving regional security developments" following Iranian attacks.

It reopened a few hours later.

Normal flight schedules have since resumed.

However, the GCAA warned that "continuous real-time monitoring remains in place to ensure the highest levels of safety of air navigation".

The United Arab Emirates (UAE) has lifted its brief airspace closure following a wave of Iranian attacks.

The country's General Civil Aviation Authority closed the airspace around 11am AEDT.

Air traffic in the region is expected to return to normal after authorities lifted the temporary precautionary measures, state news agency WAM reports.

The Israeli Defense Forces (IDF) said it has launched a "wide scale wave" of attacks against Iran.

It said the strikes are targeting infrastructure in Tehran.

An additional wave of strikes has also been launched in Beirut, the IDF said.

Meanwhile, back home, the regional petrol shortage is pushing farmers to breaking point.

Bowsers are running dry in rural Victorian towns, impacting farmers who urgently need diesel to operate machinery.

This prompted the president of the Victorian Farmers Federation (VFF) to urge Melbourne commuters to use trains, trams and buses instead of filling up and driving.

"We don't have a public transport network, we're required to drive long distances, and we need liquid fuel to make that happen," Brett Hosking said.

Read more about it here.

A hotel in central Baghdad's Green Zone was damaged in a drone attack, Iraq's Ministry of Interior said.

Social media videos show smoke and flames rising from the Al-Rasheed Hotel, which is located in an area housing government offices and diplomatic buildings, including the US Embassy.

"The ministry wishes to clarify that, after specialised forensic teams conducted an on-site and technical inspection, it was found that a drone had struck the upper fence of the hotel, without resulting in any loss of life or significant material damage," the interior ministry said in a statement.

Nobody was injured and no group has claimed responsibility for the strike.

Ahead of the Reserve Bank of Australia's interest rate decision today, the Australian sharemarket rose in early trading.

The S&P/ASX 200 Index gained 33.8 points, or 0.4 per cent at 10.14am AEDT, reports the Australian Financial Review.

Investors' hopes of steadying global economic conditions were boosted by Wall Street's best results since the war began and a drop in the price of Brent crude oil.

The UAE has just announced the temporary and complete closure of its airspace, reports Reuters.

The country's General Civil Aviation Authority says the move was "an exceptional precautionary measure", amid rapidly shifting regional security developments, the state news agency reported.

The authority advises passengers to contact their respective airlines to obtain the latest updates about flight schedules.

It says the safety of passengers and crew are the priority.