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The local share market has its best day in almost a year after reports the US is seeking a ceasefire with Iran buoyed investor sentiment, and monthly inflation was softer than expected.

Home Affairs Minister Tony Burke says the war in Iran increases the risk some Iranians may not be able to leave Australia when their visa expires.

Australia warns Israel against occupying parts of Lebanon, urging it to respect international law after the displacement of more than 1 million people.