Indo-Pacific Monitor

Six months launching Operation Epic Fury in the Persian Gulf, the US confrontation with Iran continues, having traversed through kinetic conflict, a naval blockade, a short-lived cease-fire as precursor to a peace agreement, and now economic warfare to completely isolate Iran.  However, China’s financial dealings and purchases of Iranian oil have remained outside the ambit of US sanctions.  The USS Abraham Lincoln Carrier Strike Group headed for home on August 20, and was replaced in the Northern Arabian Sea by the USS George Washington.  Traffic through the Strait of Hormuz remained well below its peacetime levels. 

Japan’s Defence Minister Shinjiro Koizumi visited India and Australia in mid-August to enhance cooperation with both partners. The joint statement following his Delhi visit pointed to the prospect of increased defence industrial cooperation, including in building MCM capability and ship production.  Australia and Japan have moved faster, with the production of Mogami-class frigates going ahead and successful field trials of a laser detection and tracking system. 

Leaders from Saudi Arabia, Turkey and Pakistan met in Mecca on August 07 to announce the Makkah Joint Defence Agreement to strengthen collective deterrence against aggression. They did not, however, identify any adversary. Structures to operationalise the agreement have yet to be developed. 

Political developments in the Indo-Pacific during the month included summits between Australia and Vietnam, Australia and Thailand, and 2+2 Foreign and Defence Ministers’ meetings between Indonesia and Australia, and Indonesia and China.  The first trilateral Australia-Indonesia-Japan Defence Ministers’ Meeting took place virtually on August 26. 

US-South Korea military relations were jolted when the Pentagon first curtailed the annual Exercise Ulchi Freedom Shield and then cancelled a joint amphibious exercise scheduled for September 2026, as President Trump wooed North Korean President Kim Jong-un.   Opinion polls in South Korea indicated strong public support for the country to develop nuclear weapons. 

China’s assertive actions in the South China Sea increased following the Philippines depositing an official nautical chart notifying baselines in the Scarborough Shoal with the UN.  China rejected the chart and conducted a naval-air exercise at the shoal, following up by enforcing unilateral rules regarding fishing in its declared ‘national nature reserve’.  Reports indicated that China was building an airstrip at Antelope Reef in the Paracel Islands.  

Pakistan and Somalia signed MoUs on defence cooperation on August 04, while Pakistan and Kuwait followed suit on August 27.  Both indicate increased Pakistani action to play a part in West Asian security.  India and Kuwait, meanwhile, held their inaugural Joint Defence Committee meeting in New Delhi on August 28. 

Reports indicated that Japan would seek a record ¥8.9 trillion (about $ 56 billion) for defence in its budget request for fiscal 2027. The amount represents 1.27% of its estimated GDP of $4.45 trillion in 2026. 

To read Issue please click  Indo-Pacific Monitor Vol. VII, Issue 8.