South Korea secures oil supplies and cuts Middle East dependence
Updated
Updated · MarketWatch · May 7
South Korea secures oil supplies and cuts Middle East dependence
15 articles · Updated · MarketWatch · May 7
Seoul locked in 273 million barrels of crude and 2.1 million tons of naphtha through year-end, while May supplies reached 74.62 million barrels, officials said.
The shift, driven by purchases from the Americas and Africa, cut Middle East crude reliance from 69% to 56% and helped refineries and petrochemical plants avoid feared shutdowns.
After a March sell-off, South Korean stocks rebounded as Hormuz disruption fears eased, though analysts said a renewed oil surge above $115 could still revive inflation and pressure markets.
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South Korea’s Strategic Response to the 96% Strait of Hormuz Oil Export Blockade: Diversification, Market Reforms, and Renewable Ambitions by 2030
Overview
In 2026, the US-Israeli war on Iran triggered a blockade of the Strait of Hormuz, disrupting 60-70% of South Korea's crude oil imports and causing oil prices to surge. In response, South Korea secured large new oil contracts from Kazakhstan, Oman, and Saudi Arabia, while rerouting shipments around Africa's Cape of Good Hope, which increased costs and transit times. Domestically, the government introduced price controls, market reforms, and released strategic reserves to ease supply pressures. Looking ahead, South Korea is building stronger storage partnerships and accelerating renewable energy deployment to reduce future risks, positioning itself as a regional energy security leader amid growing global challenges.