Australia Secures Jet Fuel from China and Urea from Brunei Amid Middle East Conflict

Australia has secured additional jet fuel supplies from China and urea from Brunei as the war in the Middle East strains global commodity markets, according to Bloomberg. The move comes as Canberra works to protect critical imports that keep flights operating and support sectors across the economy, even as energy executives warn Australia still needs much more gas production to avoid a domestic shortage later this decade.

The jet fuel arrangement is significant because Australia imports almost all of the fuel it uses for aviation, making it vulnerable when international supply chains are disrupted. Reports from Australian broadcasters and regional media have said China has been one of Australia’s biggest refined-fuel suppliers, and that any curbs or delays can quickly raise concern for airlines and airports. Foreign Minister Penny Wong has recently been in talks with Chinese officials, and Chinese state oil companies have reportedly been given the green light to begin discussing fuel exports with Australia, described as an important first step in easing supply pressure.

The urgency has increased after conflict in the Middle East rattled energy markets and raised fears about the security of shipping routes that many refineries depend on for crude oil. Australia’s fuel imports often come from Asian refiners, but those refineries themselves rely on crude that moves through vulnerable sea lanes. That means disruption can ripple quickly through the system, even if the fuel is not coming directly from the conflict zone. Australia has about 30 days of jet fuel in reserve, and officials have said the immediate outlook remains secure, but experts have warned that future deliveries may be less certain.

The new supplies also highlight the balancing act facing Canberra as it tries to protect its own energy security while maintaining trade ties with China. According to reporting on the talks, Wong has argued that inputs supplied by China, including jet fuel, help support Australia’s resources sector and the broader flow of commodities between the two countries. The agreement does not end Australia’s dependence on imported fuel, but it does show how diplomacy is being used to reduce the risk of shortages at a time of heightened geopolitical tension.

At the same time, energy executives are pressing for longer-term action at home. Bloomberg reported separately that industry leaders say Australia urgently needs to produce more natural gas to avoid a domestic shortfall later in the decade. That debate underscores a broader problem: Australia remains heavily exposed to overseas supply disruptions not only for aviation fuel but also for other key industrial inputs. For now, the immediate concern is keeping fuel flowing and prices stable, but the latest developments have added urgency to calls for stronger local supply and more resilient trade arrangements.