During a meeting at Brunei's Royal Palace, both leaders expressed ''deep concern'' over the war in the Middle East and pledged to strengthen energy supply chains and maintain open trade flows.
Following the bilateral talks, the prime minister again called for a de-escalation in the conflict between the United States and Iran and for a return to the negotiating table.
"There's no more important time to engage with our neighbours than the current time," Mr Albanese told reporters.
"The conflict in the Middle East is a long way away but it's having an impact, particularly in Asia, in our own region, because of the relationship of supplies that come through the Strait of Hormuz and the disruption that has occurred and the uncertainty that is there with regard to a resolution to this conflict.
"Australia wants to see a de-escalation. We want to see talks between the United States and Iran resume and we want to see a resumption of normal economic activity that is so important for the global economy."
Asked whether his government would be more willing to join military efforts to protect the Strait of Hormuz that are not led by the US, Mr Albanese responded that international discussions were taking place.
"We have said that we want the Strait of Hormuz to be open and we've been a signatory along with other countries to statements along those lines.
"We want safe passage of trade that is in Australia's interest, we're a trading nation, one in four of our jobs is dependent upon trade."
Foreign Minister Penny Wong, who is travelling with the prime minister, noted that Australia had made its position clear that it supported ''freedom of navigation in the Strait of Hormuz, as do many other countries''.
"We continue to engage, as the deputy prime minister has made clear, with the United Kingdom, with France, with all countries including the US, in terms of making sure post the conflict, we can see a return to freedom of navigation in the Strait of Hormuz," she said.
Earlier in the day, Mr Albanese and Senator Wong toured a fertiliser plant in Brunei, which produces nearly 10 per cent of Australia's urea supplies.
Wearing grey and green safety jackets, the Australian guests were given a tour of the facility by the chief executive of Brunei Fertiliser Industries, who explained how ammonia was produced before it was converted into fertiliser-grade urea.
During their meeting in an opulent gold-plated room inside the royal palace, the prime minister and Sultan Haji Hassanal Bolkiah discussed the need for more petrol, diesel, oil and fertiliser to be sent to Australia in coming months.
Brunei provides nine per cent of Australia's annual diesel imports, as well as 11 per cent of annual crude oil imports and 11 per cent of annual fertiliser-grade urea imports, which are crucial for agricultural production.
"What's guaranteed is that they are not looking at imposing export restrictions on Australia," Mr Albanese later told reporters at the Australian High Commission in Bandar Seri Begawan.
"Not only did we speak about ... existing supplies coming, we spoke about additional supplies as well," he said.
The prime minister will end his latest visit to Asia with a stopover in Malaysia for petrol and diesel supply talks with his counterpart Anwar Ibrahim on Thursday in Kuala Lumpur.
