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Market Chatter: Quad Launches Indo-Pacific Surveillance Plan as Hormuz Crisis Persists

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The US, Japan, India, and Australia launched a maritime surveillance initiative for the Indo-Pacific and unveiled measures to bolster energy security and critical minerals supply chains, as the group met against the backdrop of the Middle East conflict, Bloomberg reported on Tuesday.

The foreign ministers of the Quad grouping gathered in New Delhi for high-level talks focused on safeguarding regional commerce and countering growing security threats.

The meeting came as Iran discussed establishing a permanent tolling system for vessels transiting the Strait of Hormuz, a key artery for global oil and gas shipments. Iran closed the Hormuz after the outbreak of the conflict in late February.

Australian Foreign Minister Penny Wong reportedly said that the region is facing "acute economic stress," as she rejected the Iranian tolling proposal.

The four countries also unveiled plans to work with Fiji on port infrastructure projects in the Pacific Islands, which US Secretary of State Marco Rubio described as an "exciting" initiative to address limited port capacity in the region.

The US Department of State did not immediately respond to' request for comment.

The Quad aims to mobilize $20 billion in public and private funding to secure supply chains for critical minerals essential to advanced technology.

Member countries also plan to expand strategic fuel reserves and coordinate on an emergency response framework to mitigate potential fuel shortages. Japan's foreign ministry spokesperson, Kitamura Toshihiro, said that details of the plans were still being finalized.

The Quad, formed as a strategic partnership to counter China's growing influence in the Indo-Pacific, met under the shadow of the Iran conflict, which has dragged on for nearly three months.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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