"This issue is why Australia remains so concerned about what is happening in the Strait of Hormuz and is why we are so engaged with our allies to ease tensions in the Gulf,'' she said of the approach to access US oil reserves.

"Australia is reliant on traffic through the Strait of Hormuz for a percentage of our oil supplies, so we are doing everything that we can to be a good government and be prudent to make sure that we get a continuity of supply."

Senator Reynolds said she had consulted British Defence Secretary Ben Wallace overnight over the ship decision.

"We're not going to take any sudden decisions. We are carefully considering what the request is from the United States," she said.

"Australia, like so many others, is very reliant on traffic from the Strait of Hormuz. We are keen to ensure shipping can move through there quickly and also securely.

"We have a sovereign interest in the free passage of movement through the Strait of Hormuz and we are carefully considering what other nations are doing and what we might do or not do.''

Mr Taylor said Australia wanted the IEA to change the rules of the treaty to take into account oil stocks that were in transit as well as those held in reserve.

"A modernised mechanism, that includes oil stocks in transit to Australia combined with our other fuel security initiatives, would mean that as of May 2019 we are compliant at 92 days of stock," he said.


It would take between 20 and 40 days for oil reserves to be sent to Australia from the US, he said.

Opposition Leader Anthony Albanese said the government should adopt Labor's pre-election proposal to establish a national fleet to safeguard fuel stocks.

Labor promised to establish a fleet of up to a dozen vessels including oil tankers, container ships and gas carriers.

The Australian-flagged and crewed vessels would be privately owned and operate on a commercial basis but could be requisitioned by the government in times of national need.

Mr Albanese said the idea had the support of the shipping and petroleum industries.

"What we really need from this government is a secure policy on fuel and energy across the board,'' he said.

"Whether it be fuel security or whether it's an energy policy. We saw again on the weekend Angus Taylor announce what amounts to the 15th energy policy of the government, which is to have a frolic about nuclear power.''