Australia and Singapore are planning to strengthen cooperation to enhance energy security, as conflicts in the Middle East cause significant disruptions to global energy supply chains.

The Prime Ministers of Singapore and Australia, Lawrence Wong and Anthony Albanese, stated on Monday that both nations share deep concerns regarding the situation in the Middle East and its regional consequences, including impacts on energy supply chains and prices.

The conflict involving Iran has entered its fourth week, increasing market anxieties about potential long-term economic damage and sustained energy supply disruptions.

A key area of focus is the potential blockade of the Strait of Hormuz, a vital shipping route for global oil and gas, as well as other critical goods like fertilizers.

Australia and Singapore plan to explore bilateral arrangements for mutual consultation and information sharing regarding potential supply disruptions. Both countries also aim to bolster the resilience of energy supply chains by accelerating the transition to renewable energy, addressing unreasonable import and export restrictions, and maintaining open trade flows.

Concurrently, both nations have committed to supporting the supply of essential goods such as diesel and liquefied natural gas.