Australian Energy Minister to Visit Saudi Arabia Amid Middle East Tensions

Australian Energy Minister Chris Bowen has announced he will travel to Saudi Arabia next week to meet his counterpart, Prince Abdulaziz bin Salman, as escalating conflict in the Middle East raises concerns about global energy supply disruptions.

Australia imported 84% of its petroleum product demand last year, according to official data, leaving it vulnerable to global shocks. Canberra has been moving quickly to shore up supplies since the U.S.-Israeli war with Iran began in February.

"What we are seeing in the Middle East is deeply concerning," Bowen told ABC News late on Monday. He said Australia currently holds 41 days' worth of petrol reserves, adding that "the approach of the Saudi Arabian government will be key for ensuring that fuel security overcoming weeks and months."

Bowen ruled out the possibility of a fuel tax cut, after the Labor government in March halved the fuel excise for three months to help families cope with surging costs. "That excise cut was temporary ... we're not going to respond to every daily movement on the world oil price," he said.

Oil prices settled about 1% higher on Monday after Yemen's Iran-backed Houthis attacked a Saudi military facility, and after Gulf states postponed planned talks with Iran. An attack last week on Saudi Arabia's east-west pipeline, which allows Gulf oil exports to bypass the blockaded Strait of Hormuz, threatens to disrupt up to 4% of global supply.