Canberra: Japan’s prime minister Sanae Takaichi has warned that the Iran war oil crisis is having an ‘enormous impact’ across the Asia Pacific region due to ongoing disruptions in global energy supply.
Speaking during an official visit to Australia, Takaichi highlighted the effects of shipping disruptions in the Strait of Hormuz, a key waterway through which around one-fifth of the world’s oil and liquefied natural gas normally passes.
The waterway has been effectively restricted amid the ongoing conflict involving the United States and Israel with Iran, severely affecting global supply chains. A significant portion of this energy, around 80 per cent is destined for Asia, increasing the region’s vulnerability to supply shocks.
Takaichi said the situation is having a major impact on the Indo-Pacific and stressed the need for urgent cooperation. Japan and Australia agreed to strengthen coordination to address energy security concerns.
Australian Prime Minister, Anthony Albanese echoed these concerns, noting that disruptions to fuel supply and refined petroleum products are a growing issue for both countries.
Australia, which supplies about one-third of Japan’s energy needs, plays a critical role in supporting Japan’s energy security. During the visit, both countries signed agreements to enhance cooperation in energy and critical minerals.
The agreements also include plans to support projects involving essential resources such as rare earth elements, graphite and nickel, which are crucial for industries like semiconductors and electric vehicles. Beyond energy, the two nations are also strengthening defence cooperation amid shifting regional dynamics, including concerns over China’s growing influence.
The Iran war oil crisis continues to impact global markets, with rising energy prices and supply uncertainty affecting economies worldwide, particularly in energy-dependent regions like Asia Pacific.
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