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Former Treasury secretary says a tax rate was ‘socially optimal’ in submission to a new parliamentary inquiryFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastThe former Treasury secretary Ken Henry says “self-serving” claims from gas giants about the risks of a windfall profits and export taxes should be ignored by the Albanese government as it weighs up the intervention ahead of next month’s federal budget.In a submission to a new parliamentary inquiry examining the gas taxation regime, Henry made the case for a 100% windfall profit tax as he rejected the assertion that any changes would heighten perceptions of Australia as a sovereign risk and freeze investment in new projects. Continue reading...

US military boasts blockade of the strait of Hormuz will incapacitate Iran’s economy; Trump says negotiations could return to PakistanUS-Iran peace talks could resume in next two days, Trump saysWelcome to the Guardian’s continuing coverage of the crisis in the Middle East.The US military has said American forces have completely halted economic trade going in and out of Iran by sea through a blockade.An estimated 90% of Iran’s economy is fueled by international trade by sea. In less than 36 hours since the blockade was implemented, U.S. forces have completely halted economic trade going into and out of Iran by sea.”Donald Trump has said that talks with Iran could resume in Pakistan over the next two days, according to an interview with the New York Post. “Something could be happening over the next two days, and we’re more inclined to go there,” Trump was quoted as saying.US secretary of state Marco Rubio said Israel-Lebanon talks in Washington on Tuesday were a “historic opportunity”. He said that while every complexity would not be resolved immediately, he hoped the parties would begin to move forward.Lebanon’s president expressed hope that direct talks would lead to an end to his country’s “suffering” after war erupted again between Israel and Hezbollah last month. “I hope that the meeting in Washington... will mark the beginning of the end of the suffering of the Lebanese people in general, and those in the south in particular,” president Joseph Aoun said in a statement, adding that “stability will not return to the south if Israel continues to occupy its lands”.Lebanon’s top envoy to the US said the high-level diplomatic engagement between her country and Israel was “constructive,” but urged an end to the ongoing conflict between Israel and Iran-backed Hezbollah militants that has displaced thousands of Lebanese. After participating in Tuesday’s talks with Rubio and Israel’s ambassador to the US, Nada Hamadeh Moawad said she had “underscored the need to preserve our territorial integrity and state sovereignty”.The US will not renew a 30-day waiver of sanctions on Iranian oil at sea that expires this week officials told Reuters, as the US imposes a blockade on shipments from Iranian ports.UK prime minister Keir Starmer and French president Emmanuel Macron will co-host a summit in Paris on Friday focused on efforts to reopen the strait of Hormuz, Downing Street said. A spokesperson said: “The summit will advance work towards a coordinated, independent, multinational plan to safeguard international shipping once the conflict ends.”Trump criticised Italian prime minister Giorgia Meloni, a political ally, in an interview published on Tuesday for her unwillingness to help in the Iran war. “I’m shocked at her. I thought she had courage, but I was wrong,” he told Italian daily Corriere della Sera.Foreign ministers from Saudi Arabia, Pakistan and Egypt will meet Turkey’s top diplomat this week for talks on regional matters, a ministry source told AFP on Tuesday. “This is the third meeting of the four countries to discuss regional affairs, not specifically Hormuz,” said the source, who wished to remain anonymous.Hezbollah said it targeted 13 northern Israeli towns with rockets shortly after the start of Lebanese-Israeli talks in Washington. In a statement, the group said it targeted Kiryat Shmona, Metula and 11 other towns “with simultaneous rocket salvos” at 6.15pm.US treasury secretary Scott Bessent has said the underlying US economy remains strong and that growth could still exceed 3% or 3.5% this year despite the impact of the US-Israel war on Iran. Earlier on Tuesday, the International Monetary Fund (IMF) cut its growth forecasts for 2026 based on the impact of the war and said any further escalation in the conflict could trigger a global recession. Bessent however cast cuts in global growth forecasts and higher inflation projections by the IMF and World Bank as an overreaction. Continue reading...

• Iranian delegates have claimed they felt "seriously threatened" following the collapse of Vice President JD Vance's negotiations in Islamabad, with Tehran suggesting the failure extended beyond diplomatic disagreement. • An Iranian delegate alleged the team faced security threats on their way home, following Iran's Foreign Ministry condemnations of open calls in U.S. political and media circles for the assassination of Iranian negotiators. • The failed talks represent a major embarrassment for the Trump administration, with claims that the U.S. may have attempted to target Iran's negotiating team.

Judgment will rule on whether spoils of some of Hancock Prospecting’s iron ore projects must be shared with family of her father’s business partnerGet our breaking news email, free app or daily news podcastGina Rinehart faces the possibility of losing billions of dollars in riches from her Pilbara iron ore empire and her mantle as Australia’s wealthiest person when a long-awaited court verdict is delivered in Perth on Wednesday.The Western Australian supreme court judgment will rule on whether Rinehart must share the spoils of some of Hancock Prospecting’s most lucrative iron ore projects with the family of her late father’s business partner. Continue reading...

Richard Barrons backs George Robertson and says UK forces ‘too small and undernourished for the world that we now live in’Good morning. When Keir Starmer gave evidence to the Commons liaison committee before the Easter recess, and when he made a statement to MPs yesterday on the first day after it was over, he was repeatedly asked when the government will publish its defence investment plan (DIP). On both occasions, he could not give a timetable and would just say it would be published as soon as it was ready.His critics are furious because the DIP, a 10-year plan explaining how the government will fund its commitment to get defence spending up to 3% of GDP by the end of the next parliament, with total national security spending reaching 5% of GDP by 2035, was due to be published last autumn.There is a corrosive complacency today in Britain’s political leadership. Lip service is paid to the risks, the threats, the bright red signals of danger — but even a promised national conversation about defence can’t be started.We are underprepared. We are underinsured. We are under attack. We are not safe . . . Britain’s national security and safety is in peril.Like many others I hung my head in sorrow. But I couldn’t argue with him because although the Royal Navy and the Royal Air Force and the army are, in their bones, outstanding institutions, they are simply too small and too undernourished to deal with the world that we we now live in. And the review says this. Continue reading...

Exclusive: Analysis of government figures indicates public finances will gain £600m not £10bn if migrants’ access to benefits is reducedShabana Mahmood’s migration reforms are expected to deliver just £600m in savings – about 6% of the £10bn the home secretary claimed, according to the government’s own data.Under the plans, most people would have to wait 10 years to qualify for settled status, rather than the existing five-year period, which the home secretary argued would save costs on public services. Continue reading...

NSW government urged to investigate if transport department refused to share cost of sensors that would detect a person entering coupling areaFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastThe potentially life-saving safety upgrades to Sydney’s light rail, which a former Transdev employee has alleged were cancelled in order to save money, would have only cost about $2.2m, according to the whistleblower.The New South Wales government has been urged to investigate whether its transport department declined to share the cost of installing sensors that would detect a person entering the coupling area between two joined trams after a fatal incident in 2023. Continue reading...

• Venezuela's opposition coalition announced victory in April 10 municipal elections, claiming to have won majorities in 200+ municipalities, though the National Electoral Council has delayed official results release. • International election observers from the Carter Center and UN raised concerns about transparency and irregularities in voting procedures, with some polling stations reporting technical malfunctions. • The disputed results threaten to deepen political crisis in the oil-rich nation already facing severe economic collapse and humanitarian crisis, with potential for renewed street protests and international diplomatic intervention.