The ruling Democratic Party and the South Korean government have agreed to send special envoys to Saudi Arabia, Oman, and Algeria to secure crude oil due to the closure of the vital oil shipping route, the Strait of Hormuz. This decision comes amidst the ongoing US-Israeli conflict with Iran. Representatives from the Democratic Party and government officials are actively engaging in discussions with countries that offer alternative routes for oil supplies.
In addition to seeking crude oil from these nations, the officials have pledged to enhance diplomatic efforts to ensure a stable supply of oil. Plans include dispatching Korean-flagged vessels to Yanbu, a city in Saudi Arabia situated on the Red Sea coast. Furthermore, discussions during the meeting also focused on strategies to release the country’s strategic oil reserves to private refiners to address potential shortages.
Authorities are considering supplying the strategic oil reserves to private refiners initially, with plans for swaps upon the arrival of overseas shipments in Korea. Moreover, the government is closely monitoring the supply chains of 50 major industries daily to manage disruptions in the supply of naphtha, a crucial feedstock used in various industries, amid heightened domestic disruptions following US and Israeli military actions in Iran.
South Korean President Lee Jae Myung recently held talks with French President Emmanuel Macron to explore ways to expand cooperation in mitigating the economic impacts of the conflict in the Middle East. The leaders discussed strengthening strategic coordination on international issues while addressing concerns about the disruptions in global energy supply chains caused by the prolonged closure of the Strait of Hormuz due to the US-Iran conflict.
