Middle East tensions escalate, South Korea raises oil supply alert level to Level 2

(1) The South Korean government announced on Wednesday that, due to ongoing geopolitical tensions in the Middle East, it has raised the alert level for potential disruptions in crude oil supply from Level 1 to Level 2. (2) Under Level 2 alert, South Korea will strengthen control measures over oil supply and demand, specifically including: exercising priority purchase rights to secure jointly held international oil reserves, while also ensuring alternative oil supply routes that do not pass through the Strait of Hormuz. (3) Regarding natural gas supply, the Ministry of Trade, Industry and Energy stated that, given sufficient domestic inventories to meet this year’s demand and ongoing additional supplies from regions outside the Middle East, the national resource security crisis alert level for natural gas will remain unchanged at Level 1.