Australia and Korea urged to deepen ties amid escalating fuel crisis

By Newsdesk

March 31 2026
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As tensions in the Middle East escalate, Australia and South Korea are being called upon to strengthen their existing trade and investment ties to navigate the ongoing global fuel crisis. With Australia importing approximately 90% of its petrol, diesel, and aviation fuel, and South Korea standing as its largest supplier of refined petroleum products, the interdependent relationship between the two nations has never been more crucial.

Australia and Korea urged to deepen ties amid escalating fuel crisis

South Korea accounts for 29% of Australia's total fuel imports, while Australia exports around $2.5 billion worth of crude petroleum to South Korea for refining each year. In the fiscal year 2024-25, Australia represented approximately 33% of South Korea's total LNG imports, further underscoring the significance of their bilateral energy trade.

The current geopolitical situation, particularly the conflict in Iran and the resulting constraints in the Strait of Hormuz, has intensified the need for strategic collaboration between Canberra and Seoul. Liz Griffin, CEO of the Australia-Korea Business Council (AKBC), emphasised the importance of leveraging the long-standing trade, investment, and cultural ties between the two countries to weather the crisis.

"South Korean refiners have confirmed they will honour supply contracts to Australia through April. However, exports beyond late April may be disrupted if the Strait of Hormuz remains constrained," Griffin stated. Her comments highlight the precarious nature of the current fuel supply chain, which is heavily reliant on stable geopolitical conditions.

The Strait of Hormuz, a critical chokepoint for global oil shipments, has been a focal point of international concern as the conflict in Iran enters its second month. With the potential for continued disruptions in oil flow, both Australia and South Korea find themselves in a position where bilateral cooperation could mitigate some of the adverse effects on their economies.

Griffin further explained, "While both governments look at domestic policies to minimise supply concerns and disruptions, the evolving situation in the Middle East provides an opportunity for Australia and Korea to leverage each other’s strengths across upstream and downstream sectors." This sentiment reflects a broader strategy that could see both nations capitalising on their respective capabilities to ensure energy security.

The relationship between Australia and South Korea has been robust for over 60 years, marked by significant trade and investment exchanges. This foundation, according to Griffin, is essential for addressing the current challenges. "Bilateral ties across trade and investment have strengthened over the past 60+ years. This interdependent relationship must be leveraged to see us both through this current crisis," she noted.

The call to action for both countries is clear: deepen their collaborative efforts to safeguard against potential fuel shortages and economic disruptions. This includes exploring new avenues for cooperation in energy technologies and diversifying supply chains to reduce dependency on volatile regions.

As the global community grapples with the implications of the Middle East conflict, Australia and South Korea's partnership could serve as a model for other nations facing similar challenges. By focusing on mutual strengths and shared interests, the two countries have the potential to not only navigate the current crisis but also emerge stronger and more resilient in the face of future uncertainties.

The ongoing fuel crisis presents both a challenge and an opportunity for Australia and South Korea. By reinforcing their bilateral ties and leveraging their complementary strengths, they can better manage the risks associated with global energy supply disruptions. As the situation continues to evolve, the actions taken by Canberra and Seoul could have significant implications for their respective energy security and economic stability.

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