Commodities March 16, 2026

Japan and Australia Decline U.S. Call to Escort Vessels Through Strait of Hormuz; Tensions Keep Energy Markets on Edge

Tokyo cites constitutional limits while Canberra says it was not asked as Washington presses allies to form a coalition to reopen the strategic waterway

By Jordan Park
Japan and Australia Decline U.S. Call to Escort Vessels Through Strait of Hormuz; Tensions Keep Energy Markets on Edge

Japan and Australia have told the United States they do not plan to dispatch naval vessels to escort shipping through the Strait of Hormuz after President Donald Trump urged allied nations to help protect the choke point. The request comes amid an intensified U.S.-Israeli campaign against Iran that has effectively closed the strait to much of the world's tanker traffic and pushed oil prices higher. Continued drone attacks in the Gulf region and divergent reactions from global powers have left markets cautious and policymakers weighing limited options.

Key Points

  • Japan, citing constitutional constraints, and Australia have declined U.S. requests to send naval vessels to escort ships through the Strait of Hormuz - this impacts security planning and defense commitments in the Indo-Pacific and Middle East.
  • The strait remains effectively closed to most global tanker traffic since U.S. and Israeli strikes on Iran on February 28, contributing to a rise in oil prices (Brent crude traded more than 1% higher above $104.50) and increased market volatility in energy and regional equities.
  • Continued drone attacks in the Gulf - including an attack that forced temporary flight suspensions at Dubai airport and Saudi interceptions of 34 drones - sustain risks to shipping, aviation, and oil infrastructure, keeping premiums on risk-sensitive sectors elevated.

Japan and Australia said on Monday they have no plans to send warships to the Middle East to escort commercial shipping through the Strait of Hormuz, rebuffing a request from U.S. President Donald Trump for allied help to reopen the critical waterway.

Trump has argued that countries reliant on Gulf oil bear responsibility for protecting the strait - through which about 20% of the world’s energy supplies transit - and said his administration has reached out to seven nations to form a coalition. In remarks aboard Air Force One en route from Florida to Washington, he said: "Im demanding that these countries come in and protect their own territory because it is their territory. Its the place from which they get their energy." He did not identify the seven countries, but in a social media post he had named China, France, Japan, South Korea, Britain and others as potential participants.

Tokyo’s response was immediate and categorical. Prime Minister Sanae Takaichi told parliament that Japan, constrained by its war-renouncing constitution, has not decided to dispatch escort ships and currently has no plan to send naval vessels to the Middle East. "We have not made any decisions whatsoever about dispatching escort ships. We are continuing to examine what Japan can do independently and what can be done within the legal framework," she said.

Australia, another key U.S. partner in the Indo-Pacific, also indicated it would not contribute warships to reopen the strait. Catherine King, a member of Prime Minister Anthony Albaneses cabinet, said in an interview with state broadcaster ABC that Canberra had not been asked to participate and would not send naval ships to assist. "We know how incredibly important that is, but thats not something that weve been asked or that were contributing to," she said.


Diplomatic outreach and potential consequences for a presidential visit

Trump told the Financial Times he expected China to help unblock the waterway before his scheduled meeting with Chinese President Xi Jinping in Beijing at the end of the month and suggested he might postpone the trip if China did not offer support. "I think China should help too because China gets 90% of its oil from the Straits," he said, adding "We may delay" his visit if Beijing does not provide assistance. The Chinese foreign ministry did not immediately respond to a request for comment.

Trump also stepped up pressure on NATO and European allies, warning that the transatlantic alliance faces a "very bad" future if members do not come to Washingtons aid. European Union foreign ministers were scheduled to discuss strengthening a small naval mission in the Middle East, though diplomats said they were not expected to extend its remit to the Strait of Hormuz.

Downing Street said British Prime Minister Keir Starmer had discussed the need to reopen the strait with Trump and with Canadian Prime Minister Mark Carney. South Korea said it would carefully review the U.S. request.


Market reaction and immediate energy implications

Markets in Asia opened cautiously following the presidents call for allied action. Brent crude rose more than 1% to trade above $104.50 a barrel, while regional equity markets were mostly weaker after Trumps comments about enlisting other countries to safeguard the choke point.

U.S. officials, responding to concern over elevated oil prices, predicted the conflict with Iran would end within weeks and that energy costs would subsequently fall. Those expectations come against a backdrop in which the strait has been effectively closed to most global tanker traffic since the United States and Israel launched strikes on Iran on February 28, initiating a bombing campaign that has since hit thousands of targets across the country. Though some Iranian vessels and a small number of foreign ships have continued to transit, the passage remains heavily disrupted.


Security incidents underscore ongoing risks

Despite U.S. assertions that Irans military capabilities have been degraded, drone attacks persisted on Monday. Dubai authorities said a drone strike hit a fuel tank at the airport, causing a fire that was contained but forcing a temporary suspension of flights at the major international hub. Saudi state media reported that security forces intercepted 34 drones in the kingdoms eastern region within a single hour. No injuries were reported in either incident.

Over the weekend, Trump threatened further strikes on Kharg Island, Irans main oil export hub, underscoring the administrations readiness to target strategic energy infrastructure. U.S. officials said they believed the campaign would conclude soon, a projection that, if incorrect, could further destabilize oil markets and shipping.


Irans position and statements

Iran has said it remains "stable and strong" and ready to defend itself. Iranian Foreign Minister Abbas Araqchi told CBS "Face the Nation" program that Tehran had not sought a ceasefire or negotiations. "We have never asked for a ceasefire, and we have never asked even for negotiations," he said. "We are ready to defend ourselves for as long as it takes."

The contradictory public messaging - U.S. predictions of a short campaign and Iranian vows of protracted resistance - contributes to uncertainty over the duration and economic impact of the conflict, particularly for energy markets and global trade flows that rely on safe passage through the Strait of Hormuz.


Implications for markets and policymakers

The standoff leaves exporters, importers and shipping operators in a precarious position. The reluctance of Japan and Australia to commit naval assets, combined with mixed signals from other potential participants, suggests there are limits to how far Washington can internationalize immediate security operations in the Gulf. For markets, the practical consequence has been higher oil prices and continued volatility as participants weigh the prospects for further escalation or a de-escalatory end to the strikes. For governments, the episode raises legal, constitutional and political questions about the scope of military operations conducted far from home in defense of energy routes.

With the situation evolving but no clear consensus among key allies, the Strait of Hormuz is likely to remain a focal point for both diplomatic exchanges and market attention until a sustainable resolution emerges.

Risks

  • Prolonged disruption to the Strait of Hormuz could sustain elevated oil prices and volatility, affecting energy producers, refiners, and transport-dependent industries.
  • Limited allied participation in naval escorts may leave commercial shipping exposed, increasing insurance costs and logistical challenges for global trade and maritime services.
  • Ongoing drone attacks and the threat to oil export infrastructure, including threats to Kharg Island, create operational and security risks for airlines, ports, and oil companies operating in the Gulf.

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