S. Korea on Alert as Oil Prices Surge Amid Continuing War in Middle East

Why It Matters

The surge threatens South Korea’s import‑dependent economy and could ripple through global supply chains, prompting swift policy action to safeguard energy security and industrial output.

Key Takeaways

• Oil prices breach $114 Brent, $100 WTI amid Middle East tensions
• South Korea eyes strategic reserves release by mid‑April
• UAE shipments scheduled to offset potential supply shortfalls
• Rising naphtha costs threaten automotive, construction, electronics output
• Government plans export redirection and emergency budget measures

Summary

South Korea has placed its energy sector on high alert as oil prices surged past $114 a barrel for Brent and $100 for WTI, driven by escalating conflict in the Middle East and uncertainty over the Strait of Hormuz, a chokepoint that moves roughly 20% of global oil. The government reassured the public that the situation remains manageable through April, citing scheduled additional shipments from the United Arab Emirates and a planned release of strategic oil reserves in mid‑April.

The International Energy Agency warned the crisis could rival the 1970s oil shocks and the 2022 energy crisis, noting that price increases are outpacing those seen after Russia’s invasion of Ukraine. South Korea, heavily dependent on imported energy, sees the steep price climb as a direct threat to downstream industries, with naphtha—a key petrochemical feedstock—already spiking and prompting firms to contemplate temporary shutdowns.

An industry ministry official highlighted that the pace of price hikes exceeds the early months of the Ukraine war, while the IEA chief emphasized the potential for widespread damage to regional energy infrastructure. Companies in automotive, construction and electronics sectors are bracing for supply disruptions, and the government is preparing emergency budget measures to cushion rising import costs.

To mitigate risk, Seoul will redirect export volumes for domestic consumption, expand monitoring of critical supply chains, and rely on strategic reserves if needed. These steps aim to prevent immediate shortages, but the duration of the conflict and the reopening of the Hormuz route will determine longer‑term impacts on South Korea’s economy and global energy markets.

Original Description

'4월 원유 위기설' 선 그은 정부… "비축유•대체선으로 통제가능"

And as tensions in the Middle East intensify, oil prices are on a rollercoaster, raising concerns about global energy supplies.

The Korean government says the situation is under control at least up until April.

Our Moon Hye-ryeon files this report.

Global oil prices are surging amid escalating tensions in the Middle East, putting South Korea on high alert over potential supply disruptions.

Uncertainty around the Strait of Hormuz — which carries about 20 percent of global oil — has driven sharp price swings after Donald Trump demanded that Iran reopen the route.

According to Bloomberg on Monday, Brent crude briefly climbed above 114 dollars a barrel, while the U.S. benchmark WTI crossed the 100-dollar mark.

The instability comes after the International Energy Agency warned that the crisis could rival or exceed past global energy shocks. Speaking via AFP, the IEA's chief said the situation could combine the impact of the 1970s oil shocks and the 2022 energy crisis, citing widespread damage to energy infrastructure across the region.

For South Korea, heavily reliant on imported energy, the stakes are particularly high.

During a briefing on Monday, an official from the country's industry ministry said the pace of oil price increases is even steeper than during the opening of the war in Ukraine in 2022.

Despite growing fears of a supply crisis, the government insists the situation remains under control at least, for April.

The authorities say additional shipments from the United Arab Emirates are scheduled to arrive in the coming weeks, and strategic oil reserves are also set to be released around mid-April if needed.

Still, cracks are beginning to show in downstream industries.

A sharp spike in naphtha prices — a key petrochemical feedstock — is raising concerns about production disruptions.

Industry officials say some companies are already considering shutdowns, with ripple effects expected across the automotive, construction, and electronics sectors.

To contain the risks, the government plans to redirect export volumes for domestic use and expand monitoring of key supply chains.

Officials are also preparing emergency budget measures to offset rising import costs.

While Seoul maintains that immediate shortages can be avoided, much depends on how long the conflict drags on — and whether one of the world’s most critical oil routes can fully reopen.

Moon Hye-ryeon, Arirang News.

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2026-03-23, 20:00 (KST)