SEOUL, March 17 (AJP) - South Korean President Lee Jae Myung on Tuesday ordered the government to prepare for worst-case scenarios, including "wartime" extra budget, export curbs, and nationwide energy-saving measures, as the Middle East conflict threatens to disrupt global oil supplies.
“The Middle East situation is expanding beyond expectations,” Lee said in a cabinet meeting. “At this rate, gasoline prices — which have stabilized under price control measures — could turn volatile again and send shockwaves through people’s daily lives.”
Lee warned that prolonged instability following U.S. strikes on Iran could reignite energy price volatility, calling for contingency planning on the assumption that the crisis may drag on.
Seoul has imposed a temporary price cap on wholesale and retail fuel prices for the first time in nearly 30 years when prices at gas stations surged last week.
The president urged ministries to prepare a broad range of emergency responses, including demand control and supply-side measures.
“If necessary, we must consider curbing exports and increasing the operating rates of nuclear power plants,” Lee said.He also called for a nationwide energy-saving campaign, suggesting the revival of vehicle restriction schemes such as leaving cars at home once a week or adopting odd-even driving systems.
His remarks mark one of the strongest signals yet that Seoul is preparing for deeper disruptions in energy markets as the Strait of Hormuz — a key global oil transit route — remains under threat.
South Korea is among key users of the Strait of Hormuz under pressure by the Trump administration to join a maritime coalition to restore the waterway crippled by Iranian attacks.
Lee emphasized the need to mobilize diplomatic resources to secure alternative crude supplies, citing recent efforts to procure additional oil from the United Arab Emirates.
“We must make all-out efforts to discover additional supply lines by leveraging our diplomatic capabilities and assets,” he said.
South Korea imports virtually all of its crude oil, with more than 70 percent sourced from the Middle East, leaving the economy highly exposed to geopolitical shocks in the region.
The president also instructed the government to accelerate the preparation of a supplementary budget, describing it as a “war-time” fiscal response aimed at cushioning the economic impact.
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