Iran has closed the Strait of Hormuz, a crucial shipping channel, in response to US-Israeli strikes that began in February, sending oil prices skyrocketing.
Speaking shortly after Donald Trump's presidential address about the war, the prime minister said Tehran's military capabilities had been degraded.
"That is a good thing and now those objectives have been realised," he told the National Press Club on Thursday.
"It is not clear what more needs to be achieved or what the end point looks like.
"What is clear is that the longer the war goes on, the more significant the impact on the global economy will be."
In a 20-minute televised speech from the White House, the US president said the core objectives in Iran were "nearing completion" and the Islamic regime was no longer a threat.
"We are going to finish the job and we're going to finish it very fast, we're getting very close," Mr Trump said.
"We are going to hit them extremely hard over the next two to three weeks.
"We are going to bring them back to the stone ages, where they belong."
Asked if Mr Trump has damaged the social licence for the AUKUS security pact with the US and UK, Mr Albanese said Washington remained Australia's most important ally.
"People will have different views ... my job as Australian prime minister is to develop relationships with world leaders," the Labor leader said.
"That's what I do and that is what I have done."
Foreign Minister Penny Wong will meet with her counterparts from 35 nations, including Italy, France, Germany and Japan, in a virtual meeting on Thursday.
The US has not been invited.
Defence Minister Richard Marles said the nations would assess what contributions could be made to restore navigation in the strait.
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