Australia is considering building a new oil refinery for the first time in more than six decades as global fuel supplies tighten amid the US and Israeli war against Iran. The plan was reported on July 28, 2026, with Canberra seeking to assess whether such a project could strengthen domestic fuel security.

Australia’s federal government and the Western Australian state government will jointly conduct a preliminary study to examine the proposal’s feasibility, according to a government statement. The report said Canberra has faced difficulty obtaining fuel as the Middle East war has continued and disrupted global supply conditions.

Australia relies on imports for about 80 percent of its total fuel needs, increasing pressure on energy security when international supplies are disrupted. Only two oil refineries are currently operating in the country, compared with eight active facilities in 2004. Analysts said a new refinery could play a significant role in addressing domestic fuel shortages and reducing reliance on imports.