Australia's foreign minister, Penny Wong, said China has agreed to facilitate engagement with Australian businesses to ease jet fuel shortages caused by the Middle East war and disruptions at the Strait of Hormuz. The move is described as an initial but important step; China paused exports earlier to protect domestic stocks. Industry reports say state-owned Chinese firms have applied for export licences and shipments could resume in May, though Chinese authorities have not publicly confirmed the timeline.
China Agrees To Facilitate Jet Fuel Exports To Australia As Strait Of Hormuz Disruption Raises Prices
Australia's Foreign Minister Penny Wong addresses journalists during a press conference in Beijing (Adek BERRY)(Adek BERRY/AFP/AFP)
Australia's foreign minister said on Wednesday that China has agreed to facilitate engagement with Australian businesses on jet fuel supplies, a move aimed at easing disruptions caused by the war in the Middle East and shipping interruptions at the Strait of Hormuz.
Why This Matters
The conflict and the effective closure of the Strait of Hormuz — a channel that carries roughly one-fifth of global crude oil — have pushed fuel prices higher and strained energy supplies across the Asia-Pacific. Many regional refineries have been hit by reduced shipments and tighter markets.
What Was Agreed
Speaking in Beijing after talks with Chinese counterpart Wang Yi and Vice President Han Zheng, Foreign Minister Penny Wong said the Chinese government is "facilitating engagement with Australian businesses on jet fuel." She stressed the step is preliminary but important.
"I can confirm... that the Chinese government is facilitating engagement with Australian businesses on jet fuel," Wong told reporters.
Trade Reciprocity And Timelines
Wong urged greater reciprocity in trade, arguing that Australia's steady exports of raw materials and food to China should be matched by reliable supplies of gasoline, kerosene and fertilizers back to Australia. According to an Australian foreign ministry readout, she told Vice President Han that refineries across the Indo-Pacific have been disproportionately affected by the Strait of Hormuz disruption.
The Financial Times reported that major Chinese state-owned firms have applied for licences and that exports could resume in May, citing industry sources. Chinese authorities have not publicly confirmed that timeline.
Broader Bilateral Discussion
Wong said the talks also allowed candid discussion of areas of disagreement, including consular cases, human rights, concerns about foreign interference and regional and international security.
Key facts: China temporarily paused exports at the start of the war to protect domestic stocks; Beijing is now offering to facilitate business engagement on jet fuel; any resumption of exports depends on licences and official approvals.
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