Australia's Top Diplomat Races to Secure Fuel Supplies in Tokyo, Beijing, and Seoul

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A Country Running Low

Australia's fuel situation has turned serious. Since the outbreak of the Iran war on February 28 — when US and Israeli forces launched strikes on Iran, triggering what analysts call the biggest oil supply shock in recent history — hundreds of petrol stations across Australia have reported fuel shortfalls. Panic buying has hit multiple cities, and the government has been forced to halve the fuel excise tax to provide some relief.

The core problem is structural: Australia imports more than 80 percent of its refined petrol, diesel, and jet fuel from abroad. The country simply does not have the domestic refining capacity to weather a prolonged global energy disruption on its own.

Wong on the Move

Australian Foreign Minister Penny Wong is now on the latest leg of an intensive regional diplomatic push. After accompanying Prime Minister Anthony Albanese to Brunei, Malaysia, and Singapore earlier this month — where energy supply agreements were discussed and, in Singapore's case, signed — Wong is now pressing north.

In Tokyo, Wong will meet Japanese Foreign Minister Toshimitsu Motegi for talks on energy and fuel security, as well as the broader Middle East situation. Japan, itself a major importer of fuel that transits through the Strait of Hormuz, faces similar pressures and has a strong shared interest in stabilizing supply chains.

In Beijing, Wong will hold the eighth Australia-China Foreign and Strategic Dialogue with Chinese Foreign Minister Wang Yi. Australia and China have had a complicated and often fraught diplomatic relationship in recent years — but energy reality is pushing both governments toward pragmatic engagement. Wong said the talks would "progress the full range of our interests and manage our differences." China, the world's largest crude oil importer and one of the few nations granted continued access through the Strait of Hormuz by Iran, occupies a uniquely strategic position in the current crisis.

In Seoul, Wong will meet South Korean Foreign Minister Cho Hyun. South Korea is arguably the most critical stop on the tour: Wong herself has described South Korea as "one of Australia's most important sources of refined fuels." Seoul has recently introduced a five-month restriction on naphtha exports — a fuel component critical for making gasoline — underscoring how tight regional supply has become.

The Strait of Hormuz at the Center

The Strait of Hormuz — the narrow waterway between Iran and Oman — is at the heart of the crisis. Around 20 percent of the world's seaborne oil trade normally passes through it. Since Iran's closure and subsequent attacks on vessels entering the strait, tanker traffic has collapsed. Oil prices have surged well above $100 per barrel, and analysts warn that prices could climb significantly higher if the disruption continues.

Australia is in a relatively better position than many nations: it is a major exporter of liquefied natural gas (LNG), giving it diplomatic leverage with Asian partners who depend on Australian energy exports. Malaysia, for example, buys about 95 percent of its LNG from Australia; Singapore roughly 40 percent. That leverage has allowed Canberra to strike mutually beneficial supply deals with regional partners.

But analysts at the Australian Strategic Policy Institute (ASPI) warn that Australia's vulnerability goes beyond Hormuz. Refined fuel must still pass through the narrow maritime straits of Southeast Asia — Malacca, Lombok, and Sunda — before reaching Australian ports. About 83 percent of Australia's maritime imports move through these routes. The current crisis, analysts say, should be a wake-up call for Australia to take long-term fuel security far more seriously.

A Ceasefire — But No Quick Fix

President Trump announced a two-week ceasefire, and Iran pledged safe passage for ships through the Strait of Hormuz. But energy experts caution that the crisis is far from over. Iran's strikes on oil and gas infrastructure across the Gulf region — hitting Saudi Arabia, Qatar, the United Arab Emirates, and Kuwait — have caused damage that will take months to repair.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), even if the Strait fully reopens, supply tightness will persist for months. Insurance rates, damaged pipelines, and reduced refinery output across the region will continue to constrain global fuel availability.

Diplomacy as Emergency Response

Wong's current tour reflects both the urgency of Australia's energy situation and a broader shift in Australian foreign policy. Canberra has moved quickly to deepen ties across the Indo-Pacific, using its position as a major LNG exporter as a bargaining chip to lock in fuel supply agreements before shortages deepen.

The Beijing visit is particularly notable. While the Australia-China relationship has improved considerably since its lowest point in the early 2020s, strategic differences — particularly over Taiwan, the South China Sea, and human rights — remain. Wong's willingness to engage with Beijing even amid these tensions signals that energy security now ranks at the very top of Canberra's foreign policy agenda.

For ordinary Australians, the stakes are clear: stable fuel prices, functioning transport, and avoiding the kind of prolonged shortages already hitting harder in countries like Pakistan, the Philippines, and Thailand.

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Sources

1. Reuters – "Australia's Wong to visit Japan, China, South Korea to discuss energy security" (April 26, 2026): https://www.reuters.com/world/china/australias-wong-visit-japan-china-south-korea-discuss-energy-security-2026-04-26/
2. The Diplomat – "Australian PM to Travel to Brunei and Malaysia to Secure Energy, Fertilizer Supplies": https://thediplomat.com/2026/04/australian-pm-to-travel-to-brunei-and-malaysia-to-secure-energy-fertilizer-supplies/
3. ASPI Strategist – "Hormuz closure brings Australia's layered fuel vulnerability to the fore" (March 10, 2026): https://www.aspistrategist.org.au/hormuz-closure-brings-australias-layered-fuel-vulnerability-to-the-fore/
4. IEEFA – "Does the Iran ceasefire mean the fuel crisis is over? Not even close": https://ieefa.org/resources/does-iran-ceasefire-mean-fuel-crisis-over-not-even-close
5. Lowy Institute – "Strait of Hormuz crisis: Iran, shipping, and Australia's strategy": https://www.lowyinstitute.org/publications/strait-hormuz-crisis-iran-shipping-australia-s-strategy
6. Wikipedia – "2026 Iran war fuel crisis": https://en.wikipedia.org/wiki/2026_Iran_war_fuel_crisis

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