Are Australia’s Low Fuel Reserves Cause for Concern?

Despite being a major producer and exporter of energy, Australia relies heavily on imported refined fuel to power transport, agriculture and other parts of its economy, leaving it highly exposed to disruptions in global supply chains.

That dependence is now under sharp scrutiny after Iran effectively shut the Strait of Hormuz, a critical artery for global oil and fuel shipments, following US and Israeli attacks on the country in late February. While a temporary ceasefire between Washington and Tehran raised hopes that traffic through the strait might resume, the US has since announced it would begin implementing a blockade of all maritime traffic entering and leaving Iranian ports from April 13 — a move that will likely exacerbate oil and fuel shortages globally.