International oil prices rise 3.6% amid 'Israel-Hamas conflict'... Government says no current disruption in domestic crude oil and LNG imports

As the armed Palestinian group Hamas launched an offensive in southern Israel on the 7th (local time), escalating the armed conflict between the two sides, the government began an emergency inspection of the oil and gas supply situation.

On the 9th, the Ministry of Trade, Industry and Energy held an emergency situation inspection meeting with the Korea National Oil Corporation and Korea Gas Corporation, led by Second Vice Minister Kang Kyung-sung, to check the domestic oil and gas supply status and the impact on domestic and international oil prices related to the situation.

At the meeting, the Ministry of Trade, Industry and Energy confirmed that the conflict area is distant from the Strait of Hormuz, a major route for importing crude oil and gas to Korea, so there is no disruption to domestic crude oil and LNG imports. It was also confirmed that all oil tankers and LNG carriers currently sailing or loading near the Middle East are operating normally. In addition, the ministry reviewed the domestic oil and gas stockpile status and checked the preparedness for emergency supply situations.

Due to the impact of the current situation, international oil prices on the 9th showed a short-term upward trend, recording $87.70 per barrel (Brent crude, as of 9 a.m.), up about 3.6% from the previous trading day. However, the Ministry of Trade, Industry and Energy forecasted that whether the oil price rise continues will depend on the responses of oil-producing countries around Israel. The ministry closely analyzed previous Middle East conflict cases and the current international situation with the Korea National Oil Corporation and Korea Gas Corporation, discussing response measures for various scenarios of oil and gas price changes resulting from this incident.

Vice Minister Kang emphasized, "The Middle East supplies 67% of the crude oil and 37% of the gas imported by Korea, and given the significant importance of the Middle East situation to our energy security, the government, related agencies, and industry will work together with full force to ensure that the Israel-Hamas situation does not lead to domestic supply disruptions."

The Ministry of Trade, Industry and Energy plans to continuously monitor the related situation and closely check supply trends and oil price movements, including tanker operations, in cooperation with related agencies and the industry.