Seoul raises oil alert level as Middle East tensions threaten supply

South Korea on Wednesday raised its oil resource security alert, warning that the war in the Middle East is heightening risks to supply and pushing up global prices.

Seoul has also decided to import a total of 24 million barrels of crude from the United Arab Emirates, equivalent to more than eight times the country’s daily consumption, in a move aimed at stabilizing supply.

Iran has responded to the US-Israeli attacks by blockading the Strait of Hormuz, a vital sea lane for oil and gas. The supply from the UAE will come from a port on the Arabian Sea, bypassing the strait.

“The government would respond swiftly to changing conditions while working to ensure stable supply and limit the impact on households and the broader economy,” Industry Minister Kim Jung-kwan said.

The Ministry of Trade, Industry and Resources said the alert was raised to Level 2 — from “attention” to “caution” — effective 3 p.m., reflecting growing uncertainty over crude supply, shipping conditions and broader economic impacts as geopolitical persist.

Under the country’s four-tier system — attention, caution, alert and severe — the move signals a step-up in the government’s response to potential disruptions.

The additional imports follow a government delegation’s visit to the UAE from Sunday to Tuesday, where officials secured an emergency commitment for 18 million barrels on top of an earlier 6 million barrels agreed this month.

The latest shipment will include 6 million barrels transported by UAE vessels and 12 million barrels carried by South Korean ships. A separate vessel carrying naphta is also en route to Korea, the ministry explained.

The Industry Ministry said the UAE also pledged to prioritize Korea in crude supply during emergencies and agreed to establish a hotline to enable further purchases if needed. The two sides plan to sign a memorandum of understanding on long-term oil supply cooperation.

The government said it would seek to diversify supply routes, including securing crude that bypasses the Strait of Hormuz, while preparing to tap into international stockpiles if necessary. It is currently preparing a plan to release part of the 22.46 million barrels allocated to Korea under coordinated action by the International Energy Agency.

Natural gas will remain at the lower “attention” level for now, despite rising global prices. Inventory levels exceed mandatory requirements, and alternative supplies have been secured, even in the event of disruptions to Qatari shipments, the ministry added.

At the same time, Seoul will strengthen energy-saving measures, including mandatory reductions in the public sector and voluntary — and potentially mandatory — steps to curb private consumption if needed.

The ministry has been operating an emergency response team since late February and earlier this month upgraded it to a dedicated task force to monitor daily developments in oil and gas supply, logistics and industrial impact.

Separately, the government said it would step up enforcement of a recently introduced price cap on petroleum products, targeting practices such as hoarding and unfair trade to help stabilize consumer prices.