As military hostilities intensify between Israel and Iran, several hundred Australians have expressed interest in evacuating these countries, prompting urgent attention from the Australian government.

Foreign Minister Penny Wong announced that approximately 300 Australians in Israel and 350 in Iran have registered with the Department of Foreign Affairs and Trade (DFAT) for assistance in leaving, with more registrations anticipated in the coming days.

With the airspace around both nations currently closed due to the heightened risk of missile strikes on civilian flights, Minister Wong emphasized the need for those in affected areas to shelter in place.

The government is exploring various evacuation plans to facilitate departures as soon as it is safe to do so.

"I understand how concerned, how distressed many Australians are about what is occurring," Wong stated on Monday.

"What I would say is we don't want to see an escalation which leads to dire consequences for the people of the region."

The violence erupted with an Israeli strike targeting Iranian positions, which, according to Israeli Prime Minister Benjamin Netanyahu, aimed to neutralize facilities associated with Iran's nuclear program, deemed an existential threat to Israel.

This military action followed a report from the UN nuclear watchdog indicating Iran's non-compliance with its obligations under the global non-proliferation treaty.

Tensions in the region are further exacerbated by stalled negotiations with the United States.

Senator Wong has reiterated calls for de-escalation, a sentiment echoed by leaders from the UK, Canada, and France.

Prime Minister Anthony Albanese, addressing media at the G7 summit in Canada, reaffirmed Australia’s concerns regarding Iran's nuclear capabilities and emphasized the need for prioritizing diplomacy over military action.

Currently, Australian citizens, permanent residents, and eligible family members are urged to register their need for assisted departure on the Smartraveller website, which also provides ongoing updates and advice for Australians in the region, encouraging them to follow local authorities' directives.

The conflict has already resulted in significant casualties, with at least 224 reported dead in Iran and 13 in Israel from ongoing incursions.

Iran has intensified its missile strikes on Israel, prompting civilian evacuation warnings in certain districts of Tehran.

This continuous cycle of strikes not only complicates the humanitarian situation but also poses broader implications for regional and global stability.

Market analysts are closely monitoring the situation, noting a sharp increase in oil prices—a rise of 13 percent over a recent week—as fears mount regarding potential disruptions in Middle Eastern oil supply due to the conflict.

Economists suggest that an escalation could have dire consequences for global financial markets, raising concerns about inflationary pressures that may follow.

As the situation develops, it remains critical for international diplomatic efforts to address the underlying tensions to avoid further escalation.