South Korea Strikes Crude Oil Deal with UAE

South Korea reached an agreement with the United Arab Emirates on Friday to receive about four million barrels of crude oil as concerns over the ongoing US-Israel war with Iran continue to disrupt global energy markets.

Iran has claimed control of the strategic Strait of Hormuz, a vital maritime point through which roughly one-fifth of the world’s crude oil shipments pass, raising fears of potential supply disruptions. In response, Seoul said it had moved quickly to secure alternative oil shipments.

Presidential Chief of Staff Kang Hoon-sik said two South Korean-flagged oil tankers, each capable of carrying two million barrels, would be redirected to ports in the UAE that do not require transit through the Strait of Hormuz.

“We plan to immediately berth two South Korean-flagged oil tankers, each with a capacity of 2 million barrels, at alternative ports within the UAE that do not require passage through the Strait of Hormuz.” 

He explained that the vessels would immediately dock at alternative terminals in the Gulf state to load crude supplies.

Kang also said the UAE had agreed that up to 2 million barrels from strategic oil reserves jointly held and stored in South Korea could be released at any time upon request.

South Korea is the world’s fourth-largest crude oil importer, according to US government data, and remains heavily dependent on energy shipments from the Middle East.

Government figures indicate that about 70 per cent of the country’s crude oil imports normally pass through the Strait of Hormuz, making the route critical to its energy security.