Foreign Minister Penny Wong and her Papua New Guinea counterpart Justin Tkatchenko say they're optimistic that fuel shocks in the Pacific will ease rapidly now there's the chance of a peace deal in the Middle East.
Pacific nations remain heavily dependent on diesel, and while they haven't faced any fuel shortages due to the Strait of Hormuz closure, the soaring oil price has already taken a toll on household and government budgets.
PNG has announced a large subsidy package to help shield consumers from the price impact, but that is due to run out in the next two weeks.
Tkatchenko said he was confident PNG would be fine, given the conflict seemed to be coming to an end.
"Now that Trump and (Iran) have come to some sort of agreement, which we look forward to seeing in detail, it's going to make it so much easier for all of us," he said.
Wong said she assumed there would still be a "tail to the disruption" as markets restocked "but we're certainly hopeful that we will see fuel supplies returning to normal in the very near future".
"That would be a good thing for people of our region and the people of Australia," she said.