The escalating Middle East energy crisis has pushed Australia's key trading partners to the brink, with Japan hinting at a potential fuel-swap deal while delivering a blunt warning to the Albanese Government over proposed tax hikes.
Speaking at a Minerals Council of Australia conference, Japanese Ambassador Kazuhiro Suzuki cautioned that any "windfall tax" on LNG exports in the upcoming May Budget would be viewed as a "bad surprise" by Tokyo, potentially crippling future investment and straining the bilateral relationship.
The diplomatic friction arises as the federal government weighs new taxes on oil and gas profits to capture gains from soaring global prices.
"In the Japanese business dictionary, there is no word called 'good surprise'", Suzuki remarked, highlighting the industry's need for stability.
The warning coincides with South Korea implementing emergency "whole-of-government" measures to curb fuel consumption as supply lines tighten.
The crisis follows the de facto closure of the Strait of Hormuz since military conflict involving US and Israeli forces began on Feb. 28, impacting one-fifth of global oil and LNG shipments.
Foreign Minister Penny Wong on March 25 accused Tehran of "weaponising" the critical waterway to inflict global economic pain.
While Iran has suggested "non-hostile" vessels may pass via coordination with its authorities, Senator Wong has urged for the unconditional safe passage of energy supplies.