Australia is considering deploying troops to the Middle East to help protect Gulf states against Iranian drone attacks as the conflict escalates.
Shipping has been disrupted with the closing of the strait of Hormuz, one of the world's most important oil corridors.
Oil companies are accused of jacking up the price of fuel as the average price of unleaded petrol soared past $2 a litre in Sydney, Melbourne and Brisbane.
A major motoring group said some service stations were running low on fuel because Australians were buying it a greater rate than normal.
"We are also hearing troubling reports of people trying to stockpile fuel at home, which, apart from not making any economic sense, is also extremely dangerous," NRMA spokesperson Peter Khoury told reporters in Sydney.
"Please do not put jerry cans in the garage, because that is unsafe.
"So we really want Australians to slow down and to go back to their normal buying habits for fuel and please do not panic."
Mr Khoury urged oil companies not to take advantage of the war in the Middle East as an excuse to increase prices further than what they already have.
He encouraged motorists to do their research as some service stations were still selling fuel at under $2 a litre.
"Australian drivers ... please be patient, don't fill up unless you have to," Mr Khoury said.
"We don't need to see any further increases above and beyond what we've already seen."
Treasurer Jim Chalmers has asked the Australian Competition and Consumer Commission to monitor prices as the war continues.
Mr Khoury said during the high point of cycles in the three largest cities, the gap between the wholesale and the retail price normally extended out to 50 or 60 cents a litre.
Australians farmers are warning they are running low on diesel and are concerned the limited supply of oil will have greater ramifications for the economy.
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