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Australia's fuel crisis
will outlast Iran war
22 April 2026
Today, President Trump posted on social media that, because “the Government of Iran is seriously fractured” he will “extend the Ceasefire until such a time as their proposal is submitted.” He also said that the blockade would continue. But Iran has indicated doubt about both the ceasefire and the US intentions to continue the blockade.
Even with the ceasefire, there is little certainty about what the next stage of this conflict will look like. However, one vulnerability exposed by this war has been Australia’s dependence on imported oil and gas.
Renewable energy is making up a larger percentage of Australia’s energy supply than ever before, surpassing its use of fossil fuels for the first time in Q4 2025. But its demand for energy use is increasing and Australia remains the highest user of diesel per capita of any country wiht a population over 500,000. Australia imports 80% of its refined fuel. More than 95% of Australia’s refined fuel imports come from Asia, the countries most impacted by the blockade of the Strait of Hormuz, outside of the Middle East.
What led to this dependency? As USSC Non-Resident Senior Fellow Dr John Kunkel told the Australian Financial Review, the Future Made in Australia agenda is, “overweight [on] the green transition and underweight [on] economic and national security.” In 2000, Australia had eight oil refineries, now there are only two, one of which caught fire last week.
Albanese has travelled to Singapore, Brunei and Malaysia last week and has now announced securing an additional 300 million litres of diesel in the past seven days. This will not stretch far given Australia uses an average of 92 million litres of diesel a day.
The latest data published by the Australian Government says there is a 31-day supply of diesel in reserves. The war with Iran has now lasted for 54 days and, without a lasting ceasefire, shows little signs of stopping. The impacts on Australia underscore the national security impacts of economic issues that Dr Kunkel discussed in his report, Paradigm shift: The end of the Washington Consensus and the future of Australian economic statecraft.
Australia is currently at level 2 in its National Fuel Security Plan – only buy the fuel you need. However, without lasting, systemic changes to the supply chains and an approach to economic security, the end of the Iran war will not end Australia’s fuel security crisis.
Mari Koeck
Director of Engagement and Impact
Lead image: Australia's Prime Minister Anthony Albanese walks with Malaysia's Prime Minister
Anwar Ibrahim after an official welcoming ceremony in Putrajaya on 16 April 2026.
(Photo by Vincent Thian for Getty)
"We have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come
up with a unified proposal."
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United States Studies Centre
Institute Building (H03)
University of Sydney NSW 2006