The global oil supply squeeze from shipping disruptions in the Strait of Hormuz during the United States-Israeli war on Iran is having an “enormous impact” across the Asia Pacific, Japan’s prime minister warns. Sanae Takaichi made the comments on Monday during a visit to Australia, where both countries signed agreements to boost cooperation on energy and critical minerals.

Roughly one-fifth of the world’s oil and liquefied natural gas supplies normally pass through the Strait of Hormuz, but shipping has been essentially blocked by Iran since it was attacked by the US and Israel beginning on February 28. Eighty percent of that oil is destined for Asia, according to the International Energy Agency. “The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific,” Takaichi said on Monday. “We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency.” Australia provides approximately one-third of Japan’s energy supplies and is the country’s largest market for liquefied natural gas. Both Canberra and Tokyo have been trying to shore up energy supplies due to the Iran war. “Like Japan, we are very concerned by disruptions to the supply of liquid fuels and refined petroleum products,” Australian Prime Minister Anthony Albanese said.

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