Japan Prime Minister Says Strait of Hormuz Oil Disruptions Majorly Affect Asia Pacific

Shipping disruptions in the Strait of Hormuz stemming from the U.S.-Israeli war with Iran are causing significant impacts on energy supplies across the Asia Pacific, according to Japan's prime minister. The strait, through which roughly one-fifth of the world's oil and liquefied natural gas typically passes, has been effectively blocked by Iran since the conflict began on February 28, 2026.

About 80% of that oil is destined for Asia, data from the International Energy Agency shows.

During a visit to Australia on May 3, 2026, Japan's prime minister highlighted the urgency of the situation. The two countries signed agreements to strengthen ties on energy, critical minerals, defense, and economic matters. >"The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific," Japan's prime minister said.

" — Sanae Takaichi, May 3, 2026 (source) Australia supplies about one-third of Japan's energy needs and is its largest market for liquefied natural gas. Both nations have been working to secure alternative energy sources amid the disruptions. >"Like Japan, we are very concerned by disruptions to the supply of liquid fuels and refined petroleum products," Australian Prime Minister Anthony Albanese said.

Australia announced up to 1.3 billion Australian dollars (937 million U.S. dollars) in support for critical mineral projects involving Japan. These projects could supply resources such as gallium, nickel, graphite, rare earths, and fluorite, which are vital for semiconductors, electric vehicle batteries, and weapons systems.

Japan expressed interest in securing stable supplies of these minerals. The agreements come as both countries, key U.S. allies, have increased military cooperation in response to regional security shifts, including China's growing influence. dollar) deal for Japan to supply Mogami-class stealth warships to the Australian navy.