The conflict in the Middle East is having devastating impacts on the global economy, our businesses and our people. Australia calls for de‑escalation and an end to the conflict.
Iran’s closure of the Strait of Hormuz and its attacks on commercial vessels, civilian infrastructure, and oil and gas facilities, must end. So too must Houthi attacks on civilians, civilian infrastructure and commercial shipping.
These impacts are exacerbated by Russia’s unprovoked and unjustifiable war in Ukraine. Australia also calls for Russia to end this war and to respect Ukraine’s sovereignty and territorial integrity.
The loss of production, refining capacity and exports is dislocating global oil supply chains, with higher prices transmitting through inflation, growth and borrowing costs. This intensifying volatility is placing pressure on household and business budgets, especially those who can least afford it.
We recognise the G7’s commitment to a coordinated release of 100 million barrels of oil and the role of the International Energy Agency. Australia calls on all countries to maintain free, open and rules‑based trade for energy, food and fertiliser.
Australia calls for free and safe transit through the Strait of Hormuz and re‑affirm our commitments to:
- free, open and rules‑based trade in energy products
- avoiding protectionist actions, including unjustified export controls and stockpiling, that amplify the impacts on global markets
- focusing on reforms that boost productivity, strengthen our mutual supply chain resilience and accelerate the transition to a clean energy supply and diverse energy sources.
For the global economy, an end to these conflicts and a reopening of the Strait of Hormuz is urgent and essential. Even with a swift and lasting resolution, markets will take time to readjust as supply chains normalise and refineries come back online.
