Prime Minister Anthony Albanese has welcomed the reopening of the Strait of Hormuz but warned the situation remains fragile, as Australia continues efforts to shield the country from the global economic impacts of the Middle East conflict.

Mr Albanese spoke after joining a virtual meeting overnight of 49 nations and international organisations convened to support de-escalation in the region and secure freedom of navigation through the critical global shipping route.

“There was a consistent approach that we want to see de-escalation, we want to see the Strait of Hormuz opened, and we want to see no privatisation and no tolls,” Mr Albanese said.

The Prime Minister said the announcement from Iran that the Strait of Hormuz would be reopened to commercial shipping was significant, but stressed uncertainty remained.

“The news that broke while the meeting was occurring… that Iran had agreed to open the strait for all passage is important,” he said.

“But we know that it’s very fragile and we don’t assume the best, what we do is prepare as best we can for the uncertainty.”

The Strait of Hormuz is one of the world’s most important oil transit routes, carrying a significant share of global energy supply. Disruptions to shipping through the narrow waterway have raised concerns about fuel supply chains and economic stability worldwide.

Mr Albanese said freedom of navigation was essential for global trade and warned the precedent of closing major shipping routes would have far-reaching consequences.

“Freedom of navigation is essential for global trade. It is how the world operates, not just in fuel, but in other areas as well.”

He confirmed Australia would continue working with international partners to ensure maritime security and stability in the region, including participating in further discussions in London.

“We want de-escalation and the rapid resumption of negotiations. We want to prevent a further loss of innocent life and prevent damage to civilian infrastructure; we want safe and open passage of trade.”

The Prime Minister said the government had been working “around the clock” to protect Australia from supply disruptions linked to the conflict, including securing additional fuel shipments and fertiliser imports.

“We have continued to secure critical fuel supplies… leaving no stone unturned to make sure that we defend Australia’s national interests.”

Mr Albanese said while the reopening of the strait was a positive development, the economic effects of the conflict would likely continue to be felt for months.

“You can’t open the strait… and have the ships arrive at port in Asia in the next day… you’re talking 90 days before the expectation, at least.”

He said challenges remained, including infrastructure damage, maritime safety concerns and insurance barriers affecting shipping routes.

“This isn’t job done. These challenges will be around for a considerable period of time.”

The Prime Minister said Australia would continue working with international partners to support stability while monitoring impacts on domestic supply chains and the broader economy.