US President Donald Trump threatened the Iranian regime over the weekend that it had 48 hours to open the Strait of Hormuz, or he would obliterate the country's power plants.
Iran's revolutionary guard says if power plants are targeted, the Strait of Hormuz will be "completely" closed and not reopened until the facilities are rebuilt.
Meanwhile, gulf countries are finding themselves in the crossfire - with about 3,000 projectiles directed at Iran's neighbours since the war began.
The U-S has recently approved a $16.5 billion arms deal for several Gulf states - but will deeper American involvement boost their security - or force a rethink of the alliance?
Back home the federal government yesterday announced that six fuel tankers scheduled to deliver oil to Australia next month have now been cancelled or deferred.
Meanwhile, Labor has comfortably won re-election in South Australia, as One Nation had its best result in an election in nearly three decades.
Recap the morning's news, politics and global affairs with the Breakfast Wrap
