Strait of Hormuz oil squeeze hits Asia Pacific, Japan warns
Updated
Updated · Al Jazeera English · May 4
Strait of Hormuz oil squeeze hits Asia Pacific, Japan warns
11 articles · Updated · Al Jazeera English · May 4
Prime Minister Sanae Takaichi said in Australia that about 80% of oil passing through the strait normally goes to Asia, as Japan and Australia signed energy and minerals agreements.
Iran has effectively blocked shipping since US and Israeli attacks began on February 28, disrupting roughly one-fifth of global oil and liquefied natural gas supplies.
Canberra, which supplies about one-third of Japan’s energy, also pledged up to A$1.3bn for critical mineral projects with Japanese involvement as both allies deepen economic and defence cooperation.
As superpowers clash over the Strait of Hormuz, are new military alliances making Asia safer or pushing it toward war?
While giants vie for influence, are Pacific Island nations being forced to choose sides in a new Cold War?
Can new mineral alliances truly break China's grip on global tech, or is it a costly geopolitical gamble?
Asia-Pacific Faces Severe Energy Shock as Strait of Hormuz Closure Disrupts 1/5 of World’s Oil Trade
Overview
In May 2026, Iran's deployment of mines effectively closed the Strait of Hormuz, halting 20-25% of global seaborne oil shipments and triggering the largest energy disruption in history. This blockade caused a sharp surge in oil prices, fueling global inflation and prompting governments, including Japan and the US, to release strategic reserves. The Asia-Pacific region faced a severe energy emergency, accelerating efforts to diversify supply routes and invest in cleaner energy sources like renewables and nuclear power. Meanwhile, geopolitical tensions and legal constraints limited military responses, prolonging the crisis and deepening economic risks worldwide, including potential recession and supply chain fractures.