Australia and Japan have agreed to strengthen cooperation in the energy and critical minerals sectors as global trade faces disruptions from ongoing tensions in the Middle East. The agreement was signed in Canberra following a meeting between Australian Prime Minister Anthony Albanese and Japanese Prime Minister Sanae Takaichi. Albanese said the initiative aims to protect both economies from future shocks and uncertainties.

Prime Minister Takaichi told reporters that the closure of the Strait of Hormuz has severely affected the Indo-Pacific region, and both nations will maintain close communication to address the situation. Australia is Japan’s largest supplier of liquefied natural gas (LNG), while Japan provides about 7 percent of Australia’s diesel imports. Takaichi added that both countries will work to enhance self-reliance and capacity to ensure stable energy supplies.

According to the International Energy Agency, about one-fifth of the world’s oil passes through the Strait of Hormuz, with roughly 80 percent destined for Asian countries. Recent restrictions by Iran following U.S. and Israeli attacks have disrupted global oil supply routes.