DistantNews
Support us
🇰🇷 South Korea /Economy & Trade

Strait of Hormuz Blockade Looms; Government Secures Over 100% Crude Oil Supply for July-August

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Ongoing story
  • International oil prices are rising again due to Iran's declaration to close the Strait of Hormuz and the U.S. announcement of resuming maritime blockade.
  • South Korea has secured over 100% of its expected crude oil supply for July-August, mitigating immediate domestic supply concerns.
  • Four South Korean oil tankers that passed through the Strait of Hormuz after a previous US-Iran memorandum of understanding are expected to arrive in the coming weeks.

Global oil prices are experiencing renewed volatility following Iran's threat to close the Strait of Hormuz and the United States' subsequent announcement to reinstate a maritime blockade against the country. This development has reversed the stability seen after a US-Iran memorandum of understanding was signed last month.

The U.S. military stated it would resume its maritime blockade against Iran starting at 4 p.m. on the 14th (5 a.m. KST on the 15th). The Ministry of Trade, Industry and Energy reported that international oil prices have risen and are now fluctuating due to supply disruption concerns. Brent crude saw a surge of over 9%, rising from $76.01 to $83.3 per barrel, while West Texas Intermediate increased from $71.41 to $78.14. Dubai crude saw a smaller increase from $69.5 to $70.16.

International oil prices are rising and fluctuating due to supply disruption concerns following the US announcement to resume the maritime blockade against Iran.

— Ministry of Trade, Industry and EnergyReporting on the impact of the geopolitical tensions on global oil markets.

The fear of supply chain collapse, stemming from the potential blockage of a key transport route, is driving up oil prices. This is occurring while global crude oil inventories remain depleted after months of US-Iran tensions. However, the South Korean government assured that there are no immediate concerns regarding domestic crude oil supply.

The Ministry of Trade, Industry and Energy stated that South Korea has secured over 100% of its crude oil supply for July and August compared to the previous year's average. Furthermore, crude oil imports for September are steadily increasing, with 76% of the previous year's level already secured. Four South Korean oil tankers that transited the Strait of Hormuz following the US-Iran memorandum of understanding are scheduled to arrive in South Korea between the 16th and 17th, with the remaining three expected next week.

We have secured over 100% of our crude oil for July-August compared to the previous year's average, and September imports are steadily increasing.

— Ministry of Trade, Industry and EnergyAssuring the public about South Korea's stable domestic oil supply.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog