China, Australia discuss energy security as Mideast war disrupts oil supplies

Chinese and Australian premiers on Tuesday discussed the "importance of energy security" as the ongoing conflict in the Middle East continued to disrupt oil supply.

"We talked about the importance of energy security, and how we can work together for the benefit of our nations and our region," Australian Prime Minister Anthony Albanese said about his phone call with his Chinese counterpart Li Qiang.

"We will continue to engage in dialogue to maintain our stable and constructive relationship," Albanese said in a statement on the US social media company X. "Now more than ever, our relationships with our neighbors matter."

The call came as Australia has already released strategic oil reserves as well as urged its citizens to increase use of public transport to save energy.

Tehran has maintained an effective control of the Strait of Hormuz, allowing vessels of only "friendly nations" to pass the key waterway.

Fatih Birol, head of the International Energy Agency, has warned the current oil and gas crisis triggered by the closure of the Strait is "more serious than the ones in 1973, 1979, and 2002 together."

Australia procured just 2% of its energy products, worth $37 billion in 2024, from the Middle East, and has already halved its fuel tax.

Canberra has also ordered emergency fuel reserves from the US for the first time in decades.

While China has pushed for a ceasefire in the Middle East, its domestic supplies have remained undisrupted.

China maintains a 1.3-billion-barrel strategic crude reserve, enough for several months, and a diversified power mix that includes nuclear, solar, and wind, while still relying on domestically mined coal.

Beijing sourced 35% of its energy from Gulf countries in 2024, paying $413 billion for imports.