Japan's Prime Minister Sanae Takaichi has warned that the global oil supply crisis is having a significant impact on the Asia-Pacific region. During her visit to Canberra, she spoke with Australian Prime Minister Anthony Albanese about the urgent need for both countries to ensure stable energy supplies.
Takaichi pointed out that approximately 20% of the world's oil typically transits through the Strait of Hormuz, a critical shipping route now affected by tensions involving Iran, the United States, and Israel.
According to the International Energy Agency, 80% of the oil transported through this route is destined for Asia.
"The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific," Takaichi stated, emphasizing the importance of collaboration between Japan and Australia.
We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency.
Sanae Takaichi
Both leaders expressed a commitment to enhance energy autonomy and resilience. Australia is a key supplier of liquefied natural gas to Japan, while Japan provides about 7% of Australia's diesel.
The two nations also pledged to enhance their cooperation on defense, the economy, and critical minerals. Albanese noted that this partnership would help Australia mitigate vulnerabilities to global shocks.
Japan is particularly focused on securing a stable supply of essential minerals used in semiconductors and electric vehicle batteries, pivoting away from reliance on Chinese imports.
The strengthening of defense ties was highlighted by a recent agreement for Japan to supply the Australian navy with advanced stealth warships.
In her foreign policy address in Vietnam, Takaichi reinforced Japan's commitment to a 'free and open Indo-Pacific,' a strategy aimed at countering China's regional influence.
Takaichi's remarks reflect a broader initiative to enhance supply chain resilience, particularly in energy and critical minerals, as part of Japan's strategic response to current geopolitical challenges.