Prime Minister Anthony Albanese joined a virtual summit of about 50 countries on Friday evening, hosted by France and the United Kingdom.
The meeting aimed to establish support for a fragile ceasefire in the region following the US-Israeli war against Iran and ensure shipping routes reopen through the Strait, under the banner of the Strait of Hormuz Maritime Freedom of Navigation Initiative.
Mr Albanese joined the meeting intending to highlight the need for de-escalation and a swift resolution to the conflict - something he said Australia had consistently called for.
The prime minister also aimed to express how acutely Asia was feeling the impact of disruptions, with the vast majority of oil that previously passed through the Strait bound for the region.
"Australia and our Indo-Pacific partners are experiencing first-hand the impact of unprecedented disruptions to energy supply chains and impact on oil and fuel prices," Mr Albanese said before the meeting.
"Here in Australia, we are working around the clock to shield Australians from the worst of the impacts.
"Australia is calling for the Strait of Hormuz to be fully reopened for all countries."
Mr Albanese formally backed co-ordinated international diplomacy to help resolve the conflict, noting the longer the war went on, the greater the human cost and the more significant its impact on the global economy.
Iranian Foreign Minister Abbas Araqchi posted a message on X around the time of the meeting declaring the Strait of Hormuz "completely open".
French President Emmanuel Macron and UK Prime Minister Keir Starmer welcomed the Iranian statement but said the reopening must become permanent.
Mr Macron and Mr Starmer said a meeting of military planners would take place in London next week as a part of a bid to create an international mission to restore maritime security.
Asked whether Australians would be prepared to offer defensive assets, Foreign Minister Penny Wong said a diplomatic approach was preferred.
"It is very challenging to secure the strait militarily," Senator Wong told ABC News on Friday.
"Which is why diplomatic efforts, multilateral efforts, to get agreement for the strait to be open and to operate in accordance with international law are so important."
US President Donald Trump has criticised Australia for not supplying military support in the Strait of Hormuz after Lebanon and Israel agreed to a 10-day ceasefire.
Mr Albanese responded by saying the US administration had not asked for additional assistance in the region.
Opposition Leader Angus Taylor said Australia needed to work closely with the US to reopen the strait and make clear exactly what had been requested.
"The American alliance is important to this country, and opening the Strait of Hormuz is incredibly important to the price at the bowser, so we want it opened up," he told reporters on Friday.
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