UPDATE 1-Australian foreign minister says China has agreed to cooperate on jet fuel exports

China is a major source of fuel in Asia ⁠and supplied a third of Australia's jet fuel last year. In a meeting with her Chinese counterpart, Wong said she "made the ​point that the imports China supplies to Australia, including jet fuel, support the Australian resources sector, which ⁠in turn helps to maintain the flow of commodities" that are crucial to the bilateral trading ties.

The ​Chinese government has agreed to cooperate with ‌Australian ​businesses on jet fuel shipments, Australia's Foreign Minister Penny Wong said on Wednesday, suggesting China could loosen curbs on exports imposed amid supply disruption from the ‌Iran war. "We believe this is an important step, but it is the first step," Wong told reporters in Beijing, adding that the aim of her trip was to press for Chinese cooperation "in particular for the provision of liquid ‌fuels".

Wong is in China as part of a three-nation tour that also includes Japan and South Korea, ‌with Canberra seeking to keep ties with Beijing on a steadier footing while coordinating with regional powers on energy security. Australia, which imports most of its fuel, has experienced localised shortages since the Middle East conflict that began in February.

Beijing has clamped down on fuel ⁠exports since ​March to protect domestic supply ⁠after the closure of the Strait of Hormuz disrupted crude and fuel flows. China is a major source of fuel in Asia ⁠and supplied a third of Australia's jet fuel last year.

In a meeting with her Chinese counterpart, Wong said she "made the ​point that the imports China supplies to Australia, including jet fuel, support the Australian resources sector, which ⁠in turn helps to maintain the flow of commodities" that are crucial to the bilateral trading ties. "Our energy security is shared," Wong ⁠said. "Energy ​supplies to us impact upon our capacity to provide other energy and other commodities to the region," she added.

China has approved 500,000 metric tons of fuel exports for May to regions other than Hong ⁠Kong, representing a near doubling of shipments forecast for April, trading sources said, but levels remain less than half ⁠of last year's corresponding averages. "It ⁠is more important than ever for countries of the region to work together to coordinate our responses and to keep fuel and goods flowing," the Australian foreign ‌minister said on Wednesday.