Seoul sees no major disruptions in oil, gas imports amid Israel-Palestine conflict

South Korea has seen no major impact from the Israel-Palestine conflict on the country’s imports of crude oil and natural gas, the trade ministry said Monday.

Officials from the Ministry of Trade, Industry and Energy, the state-run Korea National Oil Corp. and the Korea Gas Corp held an emergency meeting earlier in the day to look into the supply of the two key fuel sources following the conflict, the ministry said.

The government expects no delays or disruptions in importing oil and gas from the Middle East given that the site of the conflict is located away from the Strait of Hormuz islands, a critical maritime route through which Korea imports oil and gas.

It found most of the crude oil and liquefied natural gas (LNG) carriers heading to South Korea are operating as usual in the Middle Eastern areas, the statement said.

“We will make all-out efforts to avoid any disruptions in securing the key energy sources amid the conflict that has just flared up,” a ministry official said.

South Korea is closely watching the situation in the Middle East, as Korea relies on the region for 67 percent of its overall crude oil purchases and 37 percent of its total gas deals.

“The government will make every effort to minimize the impact on our economy by keeping all possibilities open while strengthening market monitoring with heightened vigilance, as it is highly uncertain how things will unfold,” Choi Sang-mok, senior presidential secretary for economic affairs, said during a briefing.

South Korean stock markets were closed Monday for the Hangeul Day holiday, which celebrates the proclamation of the Korean alphabet.

Oil prices were trading at US$87.7 as of 9:00 a.m. Monday, up 3.6 percent from a day earlier as the military conflict between Israel and the Palestinian Islamist group Hamas increases political uncertainties across the Middle East and raises concerns about supplies.