Albanese: ‘At least’ 90 days before oil price reductions from Hormuz reopening hit Australia
Prime Minister Anthony Albanese has said it will take “at least” 90 days for Australia to see renewed oil supplies and a subsequent drop in prices following the reopening of the Strait of Hormuz.
Speaking to reporters the morning after attending a virtual summit of around 50 countries to discuss the permanent reopening of the Strait of Hormuz, Albanese said the impact of the closure “will be long-lasting”.
Iran has temporarily reopened the strait following a ceasefire agreement between Israel and Lebanon but has warned it could close the crucial waterway again if the US navy continues its blockade of Iranian ports.
Meanwhile, subsequent statements from both sides have left uncertainty about how quickly shipping might return to normal, with some vessels observed making unsuccessful attempts to cross the strait on Friday, local time, before turning back.
Albanese said Asia was feeling the impact of these disruptions acutely, with the vast majority of oil that usually passes through the strait destined for the region.
“Freedom of navigation is essential for global trade,” he said.
“It is how the world operates … and the precedent that would be created if a country was allowed to close a navigation strait to international traffic, would change the very way the global economy operates.”
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