Foreign Minister Penny Wong has confirmed Australia is in diplomatic talks with the US about reopening the Strait of Hormuz. Photo: Michelle Kroll.
Australia is engaged in high-level talks with the United States aimed at reopening the Strait of Hormuz to ensure safe passage for oil shipments and help end the global fuel crisis.
US President Donald Trump wants an international coalition, which he calls the Maritime Freedom Construct, to work together on a “post-conflict scenario” that will see the strait open.
The cooperation would involve some participating countries providing a naval presence in the strait, while for others it would involve information sharing and/or enforcing sanctions on Iran.
Speaking in South Korea late on Thursday (30 April) as part of her diplomatic mission to bolster fuel security, Foreign Minister Penny Wong confirmed Australia was part of those discussions with the US.
“Obviously, Australia has been involved in diplomatic efforts to reopen the strait,” Senator Wong said when asked specifically about the US Administration’s proposal.
“We are working with all of our partners, the United Kingdom, France and also the United States.
“We are engaging on options, noting that we have already provided defensive and diplomatic support to the region.”
Senator Wong’s visit to South Korea has resulted in an agreement with Australia to renew our commitment to “work together to maintain a stable, secure and reliable supply of diesel and other liquid fuels”.
Both countries issued a joint statement reaffirming a shared commitment to open markets and rules-based trade, and have agreed to work together to address unjustified import and export restrictions and support open trade arrangements for energy and liquid fuels.
The statement also includes an agreement to “notify and consult” each other on potential trade disruptions, which would give Australia advance warning of any fuel shortages and enough time to prepare.
Asked specifically about that point, Senator Wong said it was a protection measure the government hoped would not have to be implemented.
“Our hope and our expectation is that we will never have to consult on impending constraints, that we will be able to ensure that we navigate this disruption in a way that does not impact upon the reliability of supply,” she said.
“Close coordination, however, would allow us to ensure that we have notice of changes so that we can plan to manage them domestically and together.
“I think what is reflected in the statement and in the discussions today is that both Australia and the Republic of Korea recognise that our reliability as suppliers is a national asset and a strength in our relationship, and that is what the statement reflects.”
On Friday (1 May), Anthony Albanese announced that the Federal Government has secured two shipments of 100 million litres of jet fuel and another of 50 million litres of diesel for Australia.
The three new fuel shipments, going to Brisbane, Perth and Darwin, are in addition to the eight shipments already announced in partnership with BP Australia, Ampol, and Viva Energy, which will reach Australia in May and June.
To date, the government has secured more than 450 million litres of additional diesel and 100 million litres of additional jet fuel, using its Strategic Reserve powers to underwrite deals through Export Finance Australia.
The Prime Minister said EFA is continuing to progress discussions with a number of other businesses that can secure, ship and distribute fertiliser into Australia where it is needed most.
The Prime Minister said more shipments are expected under these agreements in the coming days and weeks.
“My government is working day and night, here and abroad, to shield Australians from the worst of the impacts of a war on the other side of the world,” Mr Albanese said.
“We have now secured more than 450 million litres of additional diesel and 100 million litres of additional jet fuel to keep Australia moving.
“In the face of global instability, we are leaving no stone unturned as we work to keep Australia moving, working and flying.”
More shipments are expected under these agreements in the coming days and weeks, the PM added.
Opposition Leader Angus Taylor has been touting the Coalition’s $800 million pledge to double the nation’s fuel reserves, but has had to defend the proposal against modelling suggesting it would increase petrol prices.
“[The plan would add] about a cent a litre, and we think that that’s a fair insurance policy to have extra fuel there for a crisis like we’re facing right now,” Mr Taylor said.
“We put the Minimum Stockholding Obligation in place, which has meant we’ve got far more fuel in the country than we otherwise would have had, and more storage.
“But we need more, and we are perilously close to not having enough right now. We’ve seen shortages, and this is all about filling up the car, fuelling up the nation, and powering up the future and making sure we have that fuel we need when we need it.”
Original Article published by Chris Johnson on Region Canberra.
