By David Wroe
Outgoing Liberal Senator Jim Molan has called for Australia to support the United States in providing military escorts for oil tankers in the Persian Gulf and consider imposing fresh sanctions on Iran.
The Morrison government meanwhile has declared it is "deeply concerned" by Iran's declarations that it will breach caps on uranium enrichment imposed by the Obama-era nuclear agreement by the end of this week.
Tensions between the US and Iran have skyrocketed in recent weeks, with Tehran suspected of being behind attacks on two oil tankers, prompting fears the nation could try to buck American pressure over its nuclear program by disrupting maritime trade around the Strait of Hormuz, a key choke point.
US officials are now reportedly considering military escorts, with international backing, to protect tankers.
Senator Molan, a former army major-general, said Australia had a strong national interest in ensuring the free movement of tankers because it has low liquid fuel reserves at home and therefore could be crippled by any serious global blockage.
"I believe Australia's self-interest is involved in both joining the Americans in escorting tankers in and out of the Gulf and providing surveillance for that activity as well as anything we can do in relation to sanctions," Senator Molan said.
"But for any significant military action, we should reserve our right to make a subsequent decision."
Australia typically has a navy ship in the Gulf region and can operate maritime surveillance or aerial refuelling aircraft out of bases in the Middle East, which Senator Molan said could help keep an eye on Iranian activity in international waters.
The Trump administration, which pulled out of the 2015 nuclear deal negotiated under former president Barack Obama just over a year ago, is now trying to pressure Tehran back to the negotiating table.
Iran has said it is enriching uranium and will, by June 27, breach the 300 kilogram limit on low-grade fissile material it is permitted under the deal.
It has further said it will enrich even more after July 7 unless European nations help it repair some of the damage to its economy caused by US sanctions.
Australia is not a signatory to the deal but has expressed diplomatic support. After a review of that support last year, Prime Minister Scott Morrison said Australia would maintain its position because the deal was achieving its aim of "substantial restrictions on Iran's nuclear activity".
Asked on Wednesday about Iran's enrichment activities, a spokesman for the Department of Foreign Affairs and Trade said Australia was "deeply concerned by Iran's announcements" about the deal, officially named the Joint Comprehensive Plan of Action or JCPOA. But he did not say Australia would immediately abandon public support.
"Australia has repeatedly urged Iran to comply with its JCPOA commitments," he said. "Iranian non-compliance would represent a significant setback for global nuclear non-proliferation efforts and would only serve to isolate Iran from the international community. We note that the JCPOA includes provisions for a credible dispute resolution mechanism."
Rodger Shanahan, a Middle East expert with the Lowy Institute, said Iran was likely trying to get itself deliberately into technical breach of the deal so that it could then offer to peg itself back to the 2015 limits as a bargaining chip if and when negotiations with the US resume.
He said Tehran was hoping to outlast Middle East hawks within the Trump administration, believing that officials such as the hardline national security adviser John Bolton would likely not survive in their roles beyond next year's presidential election, assuming Mr Trump wins.
"The Iranians' patience will probably outlast Trump's attention span on this issue, which is what they're banking on," he said.