On April 1, Israel bombed an Iranian embassy compound in Damascus, killing a top general and six other military officers.
Iranian Supreme Leader Ayatollah Ali Khamenei called the strike tantamount to an attack on Iranian soil and said Israel "must be punished, and it shall be", and on Sunday, Iran launched its weapons.
Treasurer Jim Chalmers said the development was incredibly concerning as violence threatens to spill into the broader region.
"We've seen enough bloodshed in the Middle East already," he told ABC's Insiders.
"We don't want to see any more lives lost in that part of the world and it would be much better if the Iranians use their influence in the region to try and calm tensions rather than inflame them.
"We don't want conflict in the Middle East to be broader and deeper than it already is."
Defence Industry Minister Pat Conroy said the escalation was not in anyone's interest.
"Regional escalation of the current Middle East conflict is something that, quite frankly, the whole world has feared since the beginning of the conflict," he told Sky News.
"Iran has been a malign actor in the region for a long, long time and we condemn the attacks."
Defence Minister Pat Conroy says escalation of the Middle East conflict is not in anyone's interest. (Mick Tsikas/AAP PHOTOS)
Australians in the region, particularly those in Tel Aviv, Oman or Baghdad should follow the advice of local authorities and shelter in place, Mr Conroy said.
The consulate emergency hotline is also available to Australians.
Unlike the US and the UK, which have deployed aircraft to shoot down some Israel-bound drones, Mr Conroy said the Australian government is focused on preventing the escalation of the conflict by supporting efforts of allies.
Opposition immigration spokesman Dan Tehan urged the government to offer Israel "all the support it can".
Meanwhile Liberal MP Julian Leeser has called on the government to close the Australian embassy in Iran.
"Australia has nothing in common with Iran, we must cut ties with this despotic regime," he said.
Julian Leeser is calling on the Australian government to close its embassy in Iran. (Mick Tsikas/AAP PHOTOS)
Israel's military has said the drones would take hours to reach their targets while Israeli Channel 12 said some missiles and drones had been shot down over Syria or Jordan.
Prior to the attack, Foreign Affairs Minister Penny Wong met with her Iranian counterpart Hossein Amir-Abdollahian and urged his nation to stabilise the region.
The government's Smartraveller website also updated its advice for the region and warned Australians to reconsider their need to travel.
As the violence in Gaza stretches into its seventh month, tensions have spread across the region and threaten to morph into a wider conflict that pits Iran and its allies against Israel and its US supporter.
On October 7, Hamas - designated a terrorist group by the Australian government - launched an attack on Israel that killed 1200 people and led another 200 to be taken hostage.
Israel has since launched a ground offensive and bombing campaign on Gaza that has killed more than 33,000 people and displaced another 1.7 million according to the local health ministry.
With Reuters
