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## Overview China will work with Australian businesses on jet fuel shipments as an important "first step" in alleviating supply crunches, according to Australian Foreign Minister Penny Wong (SCMP, April 2026). The agreement was announced as part of Wong's talks in Beijing with her Chinese counterpart, Wang Yi (SCMP, April 2026). ## Details Wong stated that "inputs China supplies to Australia, including jet fuel, support the Australian resources sector, which in turn helps to maintain the flow of commodities that are so important in the bilateral trading relationship" (SCMP, April 2026). ## Context The deal comes amid a broader regional aviation fuel supply crisis linked to disruptions from the Strait of Hormuz closure and the US-Iran conflict, which has strained jet fuel availability across Asia-Pacific markets. It also reflects Canberra's ongoing effort to balance its economic relationship with China against its strategic alignment with the United States—a recurring theme in Australian foreign policy as Wong navigates pressure from both directions. ## Why It Matters This agreement illustrates how the Strait of Hormuz crisis is reshaping bilateral energy relationships even between countries with complex strategic rivalries. For Australia, securing jet fuel supply chains is critical to sustaining its resources export sector, which underpins much of its trade relationship with China. For China, the deal offers an opportunity to deepen economic leverage with a key US ally at a moment of heightened US-China tension. ## Key Entities - **Penny Wong**: Australian Foreign Minister, negotiated the deal. - **Wang Yi**: Chinese Foreign Minister, counterpart in talks. - **China**: Supplier of jet fuel inputs. - **Australia**: Recipient, balancing US alliance with China trade ties. ## Outlook Watch for further details on shipment volumes, pricing, and whether this becomes a broader template for China-Australia energy cooperation amid the ongoing Hormuz-driven Asia-Pacific aviation fuel crisis.