Mr Albanese, back from the Commonwealth Heads of Government Meeting in the Caribbean, said the election results were a key topic of discussion among leaders. "Whether it be inflation in the global economy or the need to have free trade settings … every nation [at CHOGM] wants to see the war end and for the Strait of Hormuz to reopen," he said.
Linking the war in Iran to Australia's cost-of-living crisis, the prime minister said he would continue to make representations to Washington for de-escalation. He argued he did not need to adopt a more forceful style in his dealings with US President Donald Trump. "I have said it publicly and directly [to Mr Trump] that it's time for there to be a de-escalation," Mr Albanese said. "[Australians] can expect me to continue to work diplomatically in Australia's national interests."
Mr Trump has admitted the Iran war was "probably" to blame for the Republicans' midterm rout, while Vice-President JD Vance stated the war was "the reason we lost" in what has been seen as an attempt to distance himself from the president.
Other Labor ministers were more direct. Trade Minister Don Farrell said: "The result in the US election was clear — that American consumers don't like tariffs and Australians don't like them either." Treasurer Jim Chalmers described Australians as "the cost-of-living casualties of decisions made in DC and Tehran".
Returning to Australia to face the fallout from the Reserve Bank's latest rate hike, with the cash rate now at an 18-year high, Mr Albanese said the rate would not change the government's approach to its mid-year budget update. "We'll be consistent. We've looked for savings in each and every economic statement, and we'll do so again in MYEFO," he said. Labor has committed to a "savings package" in the update, but not necessarily net savings. The prime minister did not rule out means-testing home battery or electric vehicle subsidies, as the Business Council of Australia has called for.
Opposition Leader Angus Taylor accused the prime minister and his treasurer of being "in denial" about the economy. "We do need to lower government spending," Mr Taylor said. "This [inflation challenge] is homegrown. This is specific to Australia because of this government's failures."
Mr Albanese defended his trip to CHOGM as "worthwhile" despite returning with no announceable outcomes. He said he, Canadian Prime Minister Mark Carney and UK Prime Minister Andry Burnham used the summit to discuss a push for global AI regulation ahead of the ASEAN, APEC and G20 summits. "If there wasn't a forum that didn't feature the strategic competition between US and China, and didn't have authoritarian regimes like Russia involved, you might have to make it up, but there is — it's called the Commonwealth," he said.
Talks with Mr Burnham to reinstate regional work conditions for British backpackers were "constructive", the prime minister said, though neither side provided detail. After previously ruling out changes to the UK free-trade agreement, Mr Albanese said representations from the hospitality, agriculture sectors and the WA premier led him to change his mind. It is understood talks will continue over coming months, and the proposal has been endorsed by Immigration Minister Tony Burke.