Energy Minister Chris Bowen has revealed the federal government is planning on the basis that the Strait of Hormuz may remain closed, with global fuel supply disruptions expected to persist.
Speaking in Canberra on Monday, Bowen said Australia’s energy security planning does not assume a swift resolution to the disruption, instead factoring in continued uncertainty in international supply chains.
‘We are not counting on the opening of the Strait of Hormuz in terms of our scenario planning,’ Bowen said.
‘What we are doing is continuing to work on the basis that this uncertainty and constraint on supply will continue.’
Bowen confirmed that Australia currently has 57 fuel ships en route, with more than four billion litres of fuel contracted to arrive over the next four weeks.
‘Since this war began, not a single cargo that we have expected to arrive in Australia has failed to arrive,’ Bowen said.
‘Any cancellations of forward orders have been replaced, and more.’
But the minister was careful not to overstate the reassurance, repeatedly emphasising that the global environment remains volatile and largely out of Australia’s control.
Bowen (pictured) said the government is preparing for the Strait of Hormuz to remain closed
‘This is an uncertain international environment with risks all through it for the supply chain,’ he said.
‘That was the case at the beginning of this crisis, and it remains the case now.’
Bowen said developments overnight in and around the Strait of Hormuz had not altered the immediate fuel outlook, but cautioned that the situation beyond the coming weeks remained deeply uncertain.
His warning came after US President Donald Trump announced an overnight blockade of the Strait, due to take effect from midnight Australian Eastern Standard Time.
Bowen said the government was deliberately taking a cautious approach, refusing to be buoyed by short-term diplomatic developments.
‘There was some excitement when a ceasefire was announced, but I said clearly that there was some way to go and we could not get ahead of ourselves,’ he said.
While Bowen insisted the government was ‘leaving nothing on the field’ to secure fuel shipments, his comments painted a sobering picture of Australia’s vulnerability in a prolonged crisis. He said even allies were grappling with the same challenges.
‘We are not fully aware how this will play out in coming weeks in the Strait of Hormuz and elsewhere,’ Bowen said.
Bowen said the government was ‘leaving nothing on the field’ to secure fuel supplies (file)
Bowen said the crisis reinforced the case for reducing Australia’s reliance on imported fossil fuels over time, pointing to renewable energy as a form of national resilience.
‘No war can impede the flow of sun to Australia,’ he said.
‘No sanctions can be applied to wind, and the sun does not have to travel through the Strait of Hormuz.’