Anthony Albanese will hold his third meeting of national cabinet since the start of the Iran war, which has thrown global oil supply chains into chaos and sent prices skyrocketing.
Mr Albanese has framed the talks as a chance to ensure all jurisdictions across Australia were on the same page, playing down expectations of tougher fuel restrictions after the meeting.
"It will just be an update," he told reporters in Sydney on Wednesday.
"It's important that state and territories be informed, and it's important we work together as a nation at what is a very difficult and challenging time for the entire world," Mr Albanese said.
US President Donald Trump declared on Thursday that Iran was collapsing financially and short of cash, suggesting the regime wanted trade to resume through the Strait of Hormuz.
"They want the Strait of Hormuz opened immediately - starving for cash! Losing 500 Million Dollars a day," he said in a post on his platform Truth
Social.
Mr Trump also flagged an indefinite extension of the ceasefire in Iran.
The strait - which before the war carried around a fifth of the world's oil - has been effectively closed since US and Israeli strikes on Iran in February.
The closure has left countries scrambling to find new supplies of oil and refined fuels, prompting Australia to seek more shipments from its neighbours in Asia.
Also in  response to the global oil shock, Labor slashed the fuel excise - shaving 32 cents a litre off the price of petrol and diesel.
The three-month halving of the tax is due to expire at the end of June, but government officials are not ruling out extending the policy if the war in the Middle East continues to disrupt global supplies.
Mr Albanese warned the war in the Middle East would have long-lasting economic impacts even if it was resolved quickly, pointing to volatility in international markets.
"We have made the call of the fuel excise being there until June 30," he said when asked whether it would be extended.
"This is a volatile, turbulent period in the world. We have been very upfront about that. We're not trying to pretend that that isn't the case."
