South Korea raised its oil resource security alert to a higher level as the prolonged U.S.-Iran conflict begins to disrupt crude supply flows and strain domestic inventories.
The government elevated its crude oil crisis warning to “alert,” the third level in a four-tier system, from “caution,” effective at midnight, citing mounting supply instability and tangible economic impact. The natural gas alert was also raised one notch to “caution” from “interest.”
Officials said the move reflects a shift from potential risk to actual disruption, as crude procurement has begun to face setbacks and domestic stockpiles have fallen by more than 20%.
The escalation follows the continued closure of the Strait of Hormuz, a key global النفط shipping route. South Korea has not received crude shipments via the strait for more than 10 days after the last tanker passed through on March 1 and arrived on March 20, signaling the onset of more severe supply constraints.
Ongoing attacks on oil production and transportation facilities in the Middle East have also heightened volatility in global crude prices, adding to market uncertainty.
Natural gas supply remains relatively stable for now, as authorities secured alternative volumes through spot purchases and overseas resource development following Qatar’s force majeure declaration last month. However, surging international prices for Asia-bound liquefied natural gas are expected to raise electricity and heating costs, prompting the government to elevate the alert level and tighten demand management.
In response, authorities outlined a series of measures to stabilize supply and curb demand.
The government will seek alternative crude shipments that bypass the Strait of Hormuz through overseas trade offices and accelerate imports from output controlled by the Korea National Oil Corp. It will also encourage private refiners to secure substitute crude and utilize strategic stockpile swaps to ease domestic shortages.
Demand-side measures will be expanded across both public and private sectors. Officials are considering stricter vehicle rationing policies for public institutions while promoting energy-saving efforts among businesses and households.
The transport ministry plans to boost public transit use and ease commuting costs, while energy authorities are expected to increase nuclear power utilization and delay the phaseout of coal-fired plants to manage natural gas demand.
Supply chain monitoring will also be strengthened for naphtha and refined petroleum products affected by crude shortages. The government is moving to ban hoarding, redirect exports to domestic use, and provide financial support to offset higher import costs for alternative supplies.
Market oversight will be tightened to ensure the effectiveness of fuel price caps aimed at stabilizing consumer costs.
Industry Minister Kim Jung-kwan said the government is shifting to a higher-level emergency response system and urged public cooperation to navigate what he described as a “grave energy crisis.”
