By By Elizabeth Ugbo
South Korea struck a deal on Friday to import four million barrels of crude oil from the United Arab Emirates, aiming to secure energy supplies as the US-Israel war on Iran disrupts regional stability. The deal ensures South Korea can access alternative fuel routes and relies on UAE reserves stored in the country, bolstering the nation’s energy security amid escalating tensions in the Strait of Hormuz.
UAE Strategic Reserves to Support Seoul
Seoul also secured a pledge that up to 2 million barrels from the jointly held UAE strategic reserves in South Korea can be released at any time. Presidential chief of staff Kang Hoon-silk confirmed the agreement, highlighting swift action to protect national energy needs.
South Korea’s Dependence on the Strait of Hormuz
About 70% of South Korea’s imported crude oil passes through the Strait of Hormuz, a critical chokepoint that channels one-fifth of the world’s oil supply. Iran’s claim of control over the strait has raised urgent concerns for energy security.
Alternative Supply Routes in Place
To bypass potential disruptions, South Korea dispatched two oil tankers, each holding 2 million barrels, to alternative UAE ports. These ports avoid the Strait of Hormuz entirely, ensuring a steady oil supply without geopolitical risk.
Global Oil Market Impact
As the US-Israel conflict with Iran unsettles global energy markets, South Korea, the fourth-largest crude oil importer, has acted decisively to secure uninterrupted supply. Analysts say the move could stabilize domestic energy prices temporarily.
