Prime Minister Malcolm Turnbull is urging all parties to the Iran nuclear deal to show restraint in their response to Donald Trump's decision to withdraw the US from the agreement.
After months of threatening he would abandon what he labelled "the worst deal ever made", the president confirmed his position early on Wednesday (AEST).
"I wouldn't foreshadow a complete unravelling of the deal," Mr Turnbull told ABC Radio as he expressed regret at the US withdrawal.
"You have to be very cautious in your forecasts here, but I wouldn't be rushing off to dire scenarios."
Australia believed the deal was the best option to verify Iran's compliance with its commitments on nuclear development.
"We'd urge all parties to show restraint - the Europeans I believe will continue with the deal - and we hope Iran does too," Mr Turnbull told Sky News.
Labor foreign affairs spokeswoman Penny Wong said Australia needed to ensure all parties continued along the path to avert a nuclear-armed Iran.
"We support this deal with Iran - with reservations," Senator Wong told reporters in Canberra on Wednesday.
"Look, it's not perfect, but it's the deal the international community had and what we do need to avert is a nuclear-armed Iran; we know what that would mean for global security."
Greens senator Peter Whish-Wilson stressed the importance of Australia's continued engagement through the UN.
"We have a role to play as a respected nation in the Asia-Pacific region and I think we should absolutely step up diplomatic efforts to keep this engagement going," he said.
