The International Monetary Fund has warned of significant pressure on the global economy and inflation if the war between the US and Iran is prolonged.

Its worst-case scenario would see a global recession... inflation as high as six per cent... and elevated fuel prices all the way through 2027.

We'll speak to Treasurer Jim Chalamers.

Then, Israel and Lebanon have held their first direct talks in over three decades, with U.S. Secretary of State Marco Rubio calling it a “historic opportunity”.

But he also made clear no breakthrough agreement was expected, as the conflict -- between the Iran-backed militant group Hezbollah and Israel -- continues.

Back in Australia, the Opposition Leader Angus Taylor has outlined the first part of the Coalition's immigration policy, aiming to reduce migration, increase screening of visa applicants and kick migrants out of the country who do not abide by Australian values.

Finally, we look back at three years of civil war in Sudan, which has seen more than 14-million people displaced.

Recap the morning's news, politics and global affairs with the Breakfast Wrap.