President Lee reassures public over oil prices amid escalating Middle East tensions

President Lee Jae Myung issued a statement on Saturday to calm public concerns over oil prices amidst the rise in global crude prices due to heightened tensions in the Middle East. In a post on the social media site X, the President emphasized the government's measures to stabilize oil prices.

Lee pointed out the government's efforts to diversify crude oil imports, aiming to lessen Korea's dependence on the Middle East. The share of Middle Eastern imports had dropped from roughly 70% to 50%. He also mentioned other steps, such as imposing oil price caps, implementing export controls, and establishing a strategic oil reserve swap system.

The President reiterated the government's dedication to combating oil hoarding and price collusion, while compensating local refiners for any losses incurred from the government's price stabilization policies.

The remarks followed disruptions in the Red Sea and the Strait of Hormuz, which had raised worries about global energy supplies and pushed oil prices back above $100 per barrel. Furthermore, Saudi Arabia had shut down its East-West pipeline following the critical oil conduit coming under attack.