With Iran’s closure of the Strait of Hormuz pushing fuel prices to record highs, Australia and Japan are seeking closer coordination with regional partners on energy security as global supply disruptions highlight the need for a more resilient and cooperative approach.
“I think what this crisis does demonstrate … is the importance of stronger frameworks … to assure the energy security of the countries of the region,” Australian Foreign Minister Penny Wong said in an interview Tuesday following talks in Tokyo with Japan’s ministers for trade, economic security and foreign affairs.
At the heart of Australia’s approach is the recognition that supply vulnerabilities are not isolated. The Strait of Hormuz, she told The Japan Times, carries “20% of global oil, but 80% of the oil that comes to the refineries of Asia,” leaving the region disproportionately exposed to geopolitical shocks.
