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Japanese Prime Minister Sanae Takaichi said Monday that a global oil supply squeeze was having an “enormous impact” on the Indo-Pacific, as Japan and Australia pledged urgent cooperation to secure stable energy supplies.
Speaking in Canberra after talks with Australian Prime Minister Anthony Albanese, Takaichi said the two countries agreed to communicate closely and respond with urgency as disruption in the Strait of Hormuz affects energy flows to Asia.
Roughly one-fifth of the world’s oil normally flows through the Strait of Hormuz, where shipping has been throttled by Iran since it was attacked by the United States and Israel.
According to the International Energy Agency, 80% of that oil is destined for Asia.
“The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific,” Takaichi told journalists.
“We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency,” she said.
Takaichi said Japan and Australia aim to strengthen autonomy and resilience to secure stable supplies of energy.
Australia is Japan’s biggest supplier of liquefied natural gas. Japan, in turn, is a source for about 7% of Australia’s diesel.
The two countries issued a string of statements pledging cooperation on energy, the economy, defense and critical minerals.
“These agreements are to the benefit of both of our people,” Albanese said.
“For Australians, it will mean we are less vulnerable to global shocks like we are seeing right now because of conflict in the Middle East,” he added.
Japan’s government has said it is also keen to ensure a stable supply of critical minerals, which are essential for semiconductors, electric vehicle batteries and weapons systems.
Australia has promoted its abundant critical minerals as a way to loosen China’s grip over global supplies of rare earths.
Australia and Japan have also strengthened their defense ties, striking a 10 billion Australian dollar, or $6 billion, deal last year for Japan to provide Mogami-class stealth warships to the Australian navy.
In a foreign policy address delivered in Vietnam at the weekend, Takaichi pledged to do more to ensure a “free and open Indo-Pacific,” a strategy that has rankled China.
Takaichi said Japan aimed to build its resilience, particularly by strengthening supply chains for energy and critical minerals and enhancing security cooperation.
The idea of a “free and open” Indo-Pacific was first articulated a decade ago by Takaichi’s mentor Shinzo Abe. It has since been embraced by multiple U.S. partners and allies seeking to curb China’s influence in the region.
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