Government to Maintain Stable Crude Supply Through September…Risk if Hormuz Closure Prolongs

The government announced that there will be no problem securing the crude oil necessary for Korea through September, even amidst the blockade of the Strait of Hormuz. However, should the blockade prolong or shipping tolls be imposed, there is a possibility of supply disruptions.

The government has secured crude imports for July and August at levels above the annual average, and has secured 76% of the import volume for September compared to the same period last year. Six oil tankers bound for Korea are due to arrive this week and next, while transportation via alternate routes that detour around the open sea is also continuing.

International oil prices surged nearly 10% after U.S. President Donald Trump announced the resumption of the maritime blockade. Korea imports 70% of its crude oil through the Strait of Hormuz. The government is monitoring international oil prices and the situation in the Middle East while reviewing additional supply measures.