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South Korea has raised concerns over the economic fallout from the recent U.S. airstrikes on Iran, particularly regarding the country’s trade and energy stability. First Vice Industry Minister Moon Shin-hak said Monday that the situation in the Middle East has entered a new phase, triggering fears over potential disruptions to exports and imports. His remarks came during a monthly export monitoring meeting, according to the Ministry of Trade, Industry and Energy.
The warning comes as oil prices surged to their highest levels since January, with markets on edge over the possibility of Iranian retaliation. Analysts say any attempt by Iran to close the Strait of Hormuz—a vital route for nearly 20% of global crude oil supply—could send prices even higher and strain energy-dependent economies like South Korea.
South Korea, Asia’s fourth-largest economy, is highly reliant on exports and imported energy. In 2023, 72% of its crude oil imports came from the Middle East, underscoring its vulnerability to geopolitical shocks in the region.
In response to rising tensions, Seoul held an emergency security meeting on Sunday to assess the potential economic impact of the U.S. military action. As a precautionary diplomatic move, President Lee Jae Myung will skip this week’s NATO summit, citing uncertainties stemming from the situation in the Middle East.
The developments highlight South Korea’s exposure to global energy supply disruptions and the broader economic risks posed by escalating conflict in the region. As tensions rise, policymakers are closely monitoring oil prices and trade flows to mitigate the impact on the export-driven economy.
