Australia Secures Emergency Fuel as Iran Closes Strait of Hormuz

The Australian government secured 400 million litres of emergency diesel from South Korea, Brunei, and Malaysia following the closure of the Strait of Hormuz by the Islamic Revolutionary Guards Corps. The blockade disrupted 20% of the global oil supply and one-third of traded urea, triggering a fuel and fertilizer crisis for Australian farmers. This instability followed US-Israel military strikes on Iran that began on February 28.

Fuel costs spiked rapidly, with city diesel prices rising from 175 to 245 cents per litre, while some regional prices exceeded $4 per litre. To stabilize the market, the government released 20% of national fuel reserves and expanded the National Reconstruction Fund to include fuel manufacturing. Treasurer Jim Chalmers stated that the economic fallout was already serious and risked becoming severe.

Agricultural organizations, including the National Farmers' Federation and GrainGrowers, are now urging the government to designate agriculture as a critical industry under the Liquid Fuel Emergency Act. These groups are demanding the May 12 budget include grants for on-farm storage and the development of sovereign fertilizer manufacturing to prevent future supply chain collapses.