Energy prices have sharply surged on global markets following Israeli strikes on Iran's South Pars gas field - the world's largest natural gas reserve.

Iran has retaliated with strikes targeting major energy infrastructure inside Qatar, Saudi Arabia and the U-A-E.

U-S President Donald Trump says America knew nothing of Israel's attack on South Pars - promising that Israel will launch no more attacks on Iranian oil infrastructure.

Also, the Department of Prime Minister and Cabinet has asked Treasury to model "new levy options" as a means of taxing windfall profits of gas companies, as the government tries to shield Australians from the economic impacts of the conflict.

Fuel prices have risen sharply around the world since Iran began its effective blockade of the Strait of Hormuz - a key shipping route for about a fifth of the world's oil.

The federal government yesterday launched a taskforce to manage fuel supply, while the ACCC announced a probe into price gouging.

Meanwhile, strong winds and heavy rain have begun lashing far north Queensland... as severe Tropical Cyclone Narelle made landfall this morning.

Queensland Premier David Crisafulli warned it could be one of the biggest cyclones "in living memory".

And, Prime Minister Anthony Albanese and Home Affairs Minister Tony Burkehave attended Eid Prayers at Lakemba Mosque this morning.

But they were met with boos and demands for them to leave from some attending. 

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