Japan’s Prime Minister Sanae Takaichi has warned that the global oil supply crisis is having a “very significant impact” on the Asia-Pacific region.
After talks in Canberra with Australian Prime Minister Anthony Albanese, she pledged that Japan and Australia would further strengthen cooperation to ensure secure and stable energy supplies.
She said that in normal conditions, about one-fifth of the world’s oil passes through the Strait of Hormuz. However, the current disruption in supply chains has emerged after Iran reportedly created obstructions in the strategic sea route following attacks involving the United States and Israel.
According to the International Energy Agency (IEA), around 80 percent of oil transported through the Strait of Hormuz is destined for the Asia-Pacific region.
“The disruption in the Strait of Hormuz is having a serious impact on the Indo-Pacific region,” PM Takaichi said, adding that Japan and Australia would work in close coordination to strengthen energy security.
Australia is a major supplier of liquefied natural gas (LNG) to Japan, while Japan is an important partner in Australia’s diesel supply chain. Both countries have agreed to expand cooperation in energy, economy, defense, and critical minerals supply.
Prime Minister Albanese said such cooperation would help both nations better withstand global economic and geopolitical challenges.
Japan has been emphasizing secure supply chains for critical minerals needed for semiconductors, electric vehicle batteries, and defense systems, while Australia is leveraging its mineral resources to diversify global supply chains.
Defense cooperation between the two countries has also been expanding. Last year, Japan agreed to supply Mogami-class stealth frigates to Australia under a deal worth around AUD 10 billion.
Japan has also reaffirmed its commitment to a “Free and Open Indo-Pacific” strategy, which is increasingly seen as part of broader regional strategic balance.
Amid tensions in the Middle East and disruptions in the Strait of Hormuz, Japan and Australia are further strengthening cooperation to prioritize energy and supply security. (AFP)
