News and politics live updates: US-Iran talks resume in Switzerland after Trump threat sparked disruption

Nationals Leader Matt Canavan says Labor must sack Treasurer Jim Chalmers if they want to restore confidence with the Australian people.

“This budget by Jim Chalmers has effectively driven our economy, like Thelma and Louise, over a cliff and falling down at a rapid rate,’’ Senator Canavan told Sunrise on Monday.

“Now, the government needs to do something to restore confidence. They ripped up half their budget last week; that’s not enough.

“I mean, everyone wants to fire the liar, but what we’ve really got to do is drop the flop. Jim Chalmers’ budget is a total flop.”

Senator Canavan said Anthony Albanese needed to step in and fire Dr Chalmers from his position.

“The Prime Minister should sack him, get someone in there who actually can come up with an economic plan for our country, because the biggest problem with what’s going on in the last few months is that confidence is now cratering, and that hurts our entire economy, and yes, that will lower house prices, but lots of us will be left without a job as well, and that’s not good for everybody.”

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Opposition Leader Angus Taylor has declared he wants to “drop the flops” as he pushes to remove the Albanese government from offer.

Last week One Nation released a new anti-Labor advertising campaign with the phrase “Fire the Liar” directed towards Prime Minister Anthony Albanese.

Asked whether members of the Coalition were now copying the idea, Mr Taylor said he wanted to go even further.

“I want this whole Government dropped. I want the whole Government dropped, because it is a flop. It’s a complete utter flop,” he told reporters in Canberra.

“We should drop the flops, the whole lot of them, every single one of them should go.”

“And I’m going to be fighting every day from now to the next election to drop every single one of those flops, because they’ve got to go.”

A senior US official says negotiations between US and Iran are back underway, with talks expected to continue well into the night.

Speaking to reporters in Switzerland, the diplomat said Vice President JD Vance and the US delegation had remained in near-constant discussions with their Iranian counterparts.

“The Iranians are still here and discussions are ongoing. We anticipate continuing to work through the night,” the official said, according to CNN.

Key issues on the table include reopening the Strait of Hormuz, easing tensions in Lebanon and addressing concerns surrounding Iran’s nuclear program.

The threat that reportedly prompted a pause in the peace talks was posted in full on Truth Social, where Donald Trump took aim at Iran over the actions of its regional proxies, believed to include Hezbollah fighters operating in Lebanon.

“Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble,” he wrote.

“If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!! President DONALD J. TRUMP.”

Israeli Prime Minister Benjamin Netanyahu has publicly acknowledged differences with US President Donald Trump, days after Washington signed a memorandum of understanding with Iran aimed at paving the way for a broader peace agreement.

Speaking at a conference in Jerusalem, Mr Netanyahu said, “We’re leaders of independent and proud countries. Often we see eye to eye; sometimes we don’t.”

He also doubled down on Israel’s military presence in southern Lebanon, saying forces would remain there “as long as we need to protect our people,” and rejected suggestions other countries could better contain Hezbollah.

Defending Israel’s campaign against the Iran-backed militant group, he said, “No country would do it better.”

Peace talks between the US and Iran in Switzerland have been paused after fresh threats from US President Donald Trump threatened to derail efforts to secure a broader agreement between the two nations.

Iran’s state news agency IRNA reported the country’s delegation left the negotiating venue after Mr Trump issued warnings over Tehran’s backing of Hezbollah amid escalating violence between the militant group and Israel in Lebanon.

However, officials stressed the talks had not collapsed entirely, with an Iranian source telling Reuters negotiations had been paused rather than ended.

A diplomat also told AFP the Iranian team remained involved in discussions, saying, “The Iranian delegation remains engaged in the talks and has not indicated to the mediators any intention to leave.”

Vice President JD Vance, special envoy Steve Witkoff and Mr Trump’s son-in-law Jared Kushner are in Switzerland for the talks, which were originally expected to focus on Iran’s nuclear program before attention shifted to renewed tensions in Lebanon.

Iran’s state media said the delegation departed after Mr Trump repeated threats against Tehran during the opening stages of negotiations.