South Korea faces economic risks amid Middle East tensions

South Korea is preparing for economic repercussions following US airstrikes on Iranian nuclear facilities, raising fears of oil price hikes and supply chain disruptions. President Lee Jae-myung’s administration had gained early economic traction, but the ongoing conflict threatens stability. With 70% of its crude oil sourced from the Middle East, South Korea faces heightened risks should tensions worsen or the Strait of Hormuz be blocked. Oil prices have already surged—WTI by 5% and Brent by 3%—since the 13 June escalation. The Trade Ministry held an emergency meeting, confirming strategic oil and gas reserves sufficient for 200 days.