Japan PM says oil crisis has 'enormous impact' in Asia-Pacific

CANBERRA

A global oil supply squeeze is inflicting an "enormous impact" on the Asia-Pacific region, Japan Prime Minister Sanae Takaichi said on May 4.

Speaking in Canberra after talks with Australian Prime Minister Anthony Albanese, she said the two countries would respond urgently to secure stable energy supplies.

Roughly one-fifth of the world's oil normally flows through the Strait of Hormuz, with eighty percent of that oil destined for Asia.

"The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific," the Japanese leader told journalists.

"We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency."

The two countries aim to strengthen autonomy and resilience to secure stable supplies of energy, Takaichi said.

Australia is the biggest supplier of liquefied natural gas to Japan, which in turn is a source for about seven percent of Australia's diesel.

The two countries issued a string of statements vowing to work together on energy, the economy, defense and critical minerals.

Japan's government has said it is also keen to ensure a stable supply of critical minerals, essential for semiconductors, electric vehicle batteries and weapons systems.

Australia has touted its abundant critical minerals as a way to loosen China's grip over global supplies of rare earths.

Australia and Japan have strengthened their defence ties, too, striking a AUD$10 billion ($6 billion) deal last year for Japan to to provide Mogami-class stealth warships to the Australian navy.