Hormuz attacks highlight fuel risks; Viva targets June repairs; Albanese signs Japan pact; Chalmers questions tobacco tax cut

Two ships were attacked in the Strait of Hormuz within hours, the British military’s United Kingdom Maritime Trade Operations centre said on Monday, underscoring the volatility of the key shipping lane. The alert said a tanker was targeted off the United Arab Emirates at about 11:40 pm Sunday (Monday morning AEST) and struck by unknown projectiles.

All crew were reported safe and no environmental impact was reported. Another vessel came under attack earlier, as US President Donald Trump announced the United States would launch an operation on Monday to guide stranded ships through the channel, dubbed “Project Freedom”.

Tensions between Iran and the US remain high. Against that backdrop, Viva Energy outlined a six‑week repair schedule at its Geelong refinery following a major blaze three weeks ago in the alkylation unit, which converts gases into a petrol component. The company said the fire was sparked by an equipment fault and cut petrol production to 60 per cent.

Viva expects the damaged unit to be repaired and back in operation in June, with petrol output returning to 90 per cent of capacity once work is complete. Jet fuel and diesel are currently being produced at around 80 per cent of capacity. When running near full capacity, the refinery supplies about half of Victoria’s fuel and about 10 per cent nationally.

Viva said it has sufficient stocks to cover reduced production and expects to maintain normal supply to customers. Before the blaze, it had been seeking to maximise output to help Australia manage the oil shock linked to war in the Middle East and the closure of the Strait of Hormuz.

Prime Minister Anthony Albanese said Australia had reached a series of agreements with Japanese Prime Minister Sanae Takaichi during her first visit to Canberra, including a joint declaration on economic security cooperation. He said the accord is intended to improve resilience to economic shocks, build trust and strengthen supply chains.

A joint statement on energy security reaffirmed both countries’ commitment to navigate the current energy crisis together and maintain open trade flows of essential energy goods, including liquid fuels and gas. Another statement elevated critical minerals to a core pillar of the economic and security relationship.

Albanese said the two leaders had instructed relevant ministers to explore further ways to institutionalise and deepen cooperation. Treasurer Jim Chalmers, meanwhile, questioned whether cutting the tobacco excise would meaningfully curb Australia’s illicit tobacco trade, as stakeholders appeared before a Senate inquiry into the multi‑billion‑dollar black market on Monday.

He signalled scepticism that lower taxes would address the problem. Australia’s near‑term focus will be on Viva’s repair timetable and monitoring developments in the Strait of Hormuz, while officials work on the new agenda with Japan and the Senate examines policy options to counter illicit tobacco.