The BRICS TimesJapan’s Prime Minister Sanae Takaichi, during her visit to Canberra, raised a sharp alarm the worldwide tightening of oil supplies is delivering a devastating blow to the Asia-Pacific region. She pledged urgent cooperation with Australia to lock in stable energy and critical mineral supplies amid the deepening Middle East crisis.
Japan and Australia Sound the Alarm on Oil Crisis
The worldwide squeeze on oil supplies is delivering what Japan’s Prime Minister Sanae Takaichi calls an “enormous impact” across the Asia-Pacific region. Takaichi made this blunt assessment on Monday fresh off high-level talks in Canberra with Australian Prime Minister Anthony Albanese. Both leaders pledged to act fast and work closely to lock down stable energy supplies for their nations.
The root of the crisis lies in the Strait of Hormuz one of the world’s most critical oil shipping lanes. Under normal conditions, roughly one-fifth of the planet’s entire oil supply moves through this narrow passage. But since the United States and Israel attacked Iran, Tehran has effectively throttled shipping traffic through the strait leaving global energy markets rattled and supply chains stretched thin.
Asia Bears the Heaviest Burden
The numbers paint a stark picture. According to the International Energy Agency, a full 80 percent of the oil that passes through the Strait of Hormuz is headed for Asian markets. That makes the ongoing disruption particularly damaging for the Asia-Pacific region far more so than for Western economies.
“The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific,” Takaichi told journalists gathered in Canberra.
“We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency,” she added.
Takaichi further stressed that both countries are committed to building greater autonomy and supply-chain resilience ensuring stable access to energy no matter how volatile the global situation becomes.
Two Nations, Deeply Intertwined on Energy
The Japan-Australia energy relationship runs deep and the current crisis makes that bond even more critical. Australia stands as Japan’s single largest supplier of liquefied natural gas. Japan, in turn, supplies roughly seven percent of Australia’s diesel needs. Each country depends on the other in ways that make close coordination not just desirable but essential.
A Broader Push Against ‘Global Shocks’
Beyond energy, both nations signed a sweeping set of agreements covering cooperation on the economy, defence, and critical minerals. Australian PM Albanese underscored the importance of these deals in direct terms.
“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.
Tokyo has made securing a steady flow of critical minerals a top national priority. These minerals essential for manufacturing semiconductors, electric vehicle batteries, and advanced weapons systems have become a geopolitical flashpoint. Australia, rich in rare earth reserves, has actively positioned itself as the key alternative to China’s grip over global critical mineral supply chains.
Defence Ties Deepen as Strategic Interests Align
The Japan-Australia partnership has moved well beyond trade and energy. The two countries sealed a major Aus$10 billion roughly US$6 billion defence deal last year, under which Japan will supply Mogami-class stealth warships to the Australian navy. That agreement reflects how much the two nations now see their security interests as intertwined.
Japan’s Indo-Pacific Vision, A Clear Signal to Beijing
Before landing in Canberra, Takaichi delivered a foreign policy speech in Vietnam over the weekend. In it, she pledged to push harder for a “free and open Indo-Pacific” a geopolitical vision that has long irritated Beijing.
Japan’s goal, she said, is to build national resilience across the board strengthening energy and critical mineral supply chains, while deepening security cooperation across the region. The concept of a “free and open Indo-Pacific” was first championed roughly a decade ago by former Japanese PM Shinzo Abe who was Takaichi’s political mentor. Since then, the idea has gained traction among multiple US allies and partners all looking to check China’s growing regional influence.
Mayur Mohta
Akshay Didwaniya
Aditya Didwaniya