Labor is copping the blame for the US ‘excursion’ in Iran. Can they get Trump out of the driver’s seat? | Peter Lewis

The Guardian US News
by Peter Lewis
March 24, 2026
4 min read

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Australia's Labor government faces domestic political pressure as fuel prices and interest rates spike following Trump administration's Iran military action.

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Australia's Labor government is facing domestic political pressure as fuel prices and interest rates spike following the Trump administration's military action in Iran, with voters increasingly blaming the Albanese government rather than global factors for economic pain. The government committed to the AUKUS security alliance with the US and UK, positioning itself as aligned with American strategic interests, but now finds itself in an awkward political position as that alignment exposes Australians to the economic fallout of US foreign policy decisions. Australians are questioning whether the costs of deepening ties with Washington—through rising energy and borrowing costs—justify the promised long-term security benefits. The commentary suggests Labor is trapped between its strategic bet on the US partnership and domestic anger over inflation, making it difficult for the government to reform or escape responsibility for economic conditions largely driven by Trump's foreign policy. The piece frames the political dilemma: the Albanese government is a "reluctant passenger" in American foreign policy decisions it cannot control.

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