Japans Prime Minister Warns of Enormous Impact from Oil Crisis on Asia-Pacific Region

Japan’s Prime Minister Sanae Takaichi has stated that the global oil supply squeeze caused by shipping disruptions in the Strait of Hormuz is having a significant impact on the Asia Pacific region. During her visit to Australia, Takaichi signed agreements with Australian officials to enhance cooperation on energy and critical minerals.

The Strait of Hormuz, which accounts for roughly one-fifth of the world’s oil and liquefied natural gas supplies, has been blocked by Iran since the US and Israel launched a military operation against the country on February 28. Eighty percent of this oil is destined for Asia, according to the International Energy Agency.

Takaichi emphasized the importance of close communication between Japan and Australia in responding to the crisis. Australia provides approximately one-third of Japan’s energy supplies and is its largest market for liquefied natural gas. The Australian government has announced plans to provide up to $1.3 billion in support for critical mineral projects with Japanese involvement.

Japan’s government is seeking a stable supply of critical minerals, essential for semiconductors, electric vehicle batteries, and weapons systems. Australia and Japan have strengthened their military cooperation in recent years, particularly in response to China’s growing influence in the region. The two countries recently agreed on a $10 billion deal for Japan to provide stealth warships to the Australian navy.

Takaichi’s visit to Australia has resulted in several agreements aimed at enhancing energy and economic cooperation between the two nations.

Source: Al Jazeera