Iran crisis leaves Korea’s oil, gas supplies unthreatened — for now

Minister of Commerce, Business and Assets Kim Jeong-kwan speaks throughout a gathering with overseas chambers of commerce in Korea in Seoul, Thursday. Yonhap

Korea’s oil and gasoline imports from the Center East have remained largely unaffected by the U.S. and Israeli army strikes on Iran that killed Iranian Supreme Chief Ayatollah Ali Khamenei throughout a joint operation that started Saturday (native time), the Korean authorities mentioned Sunday.

Moon Shin-hak, first vice minister of commerce, business and vitality, held a second emergency assembly with officers from the overseas, vitality, and oceans ministries, in addition to state-run corporations within the commerce, vitality, and energy sectors, to evaluate how the disaster might have an effect on Center Japanese provides of key vitality sources to Korea.

The assembly adopted an preliminary session convened late Saturday by Business Minister Kim Jeong-kwan shortly after the assault started.

The back-to-back conferences, attended by officers from the Korea Nationwide Oil Corp., the Korea Gasoline Corp., and the Korea Electrical Energy Corp., confirmed Korea has secured sufficient oil reserves to final for months within the occasion of provide disruptions. Authorities added that present gasoline reserves exceed the nation’s necessary stockpile requirement.

The state of affairs, nonetheless, nonetheless poses dangers to Korea. Iran has closed the Strait of Hormuz on its southern coast, blocking a future passage for oil tankers heading to Korea. The blockage of the important thing international logistics path got here after the Korean authorities predicted Iran might seal the strait and agreed that different routes should be ready for Korea-bound tankers utilizing the trail.

The state of affairs, nonetheless, nonetheless poses dangers to Korea as Iran’s Revolutionary Guard warned vessels that no ships could be allowed to transit the waterway — a essential international transport route — elevating considerations about future oil tanker passages to Korea. The blockage of the important thing logistics hall adopted the Korean authorities’ earlier warnings that Iran may seal the strait, and underscored the necessity to put together different routes for Korea-bound tankers.

The federal government mentioned that because the 2023 Purple Sea disaster, main Korean transport corporations have rerouted vessels across the southern tip of South Africa, including that the present state of affairs poses no fast menace to maritime logistics for big ships delivering vitality sources.

The federal government additionally warned that oil and gasoline costs might fluctuate to various levels relying on how the disaster unfolds.

An oil tanker transfers crude to a buoy for transport to a storage facility close to Ulsan on this July 2025 photograph. Courtesy of Korea Nationwide Oil Corp.

“Korea’s whole exports to the Center East accounted for less than 3 p.c final 12 months. But when the disaster persists, it might drive up oil costs and logistics prices. The influence could be vital,” the federal government mentioned in an announcement.

“Korean corporations anticipating commerce disruptions because of the disaster will obtain authorities assist, together with help with logistics prices and entry to abroad logistics facilities.”

The federal government mentioned Korea’s key imports from the Center East are largely restricted to grease and gasoline. Greater than 70 p.c of the nation’s crude oil imports come from the area, primarily from Saudi Arabia, with smaller volumes equipped by the United Arab Emirates, Iraq, Kuwait and Qatar.

Outdoors the Center East, the US is Korea’s largest nonregional crude provider, adopted by Russia, Indonesia and several other South American international locations in smaller quantities.

Australia is Korea’s largest provider of pure gasoline, whereas the Center East accounts for as much as 20 p.c of its gasoline imports, principally from Qatar.

The business ministry mentioned Saturday it appointed the pinnacle of its Workplace of Business, Commerce and Useful resource Safety to steer an emergency activity pressure in response to the disaster.