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

President Lee Jae Myung addressed public concerns over rising oil prices on Saturday, assuring Koreans that the government is taking decisive action to maintain stable energy costs amidst growing tensions in the Middle East. In a social media post on platform X, he detailed the government's strategy to mitigate the impact of volatile global crude prices. This strategy includes diversifying the sources of imported crude oil, with the Middle East's share of imports decreasing from nearly 70% to 50%.

Lee also outlined additional measures, such as implementing oil price caps, imposing export controls, and establishing a strategic oil reserve swap system. He emphasized the government's resolve to enforce stricter regulations against oil hoarding and price collusion, while simultaneously compensating local refiners for any losses incurred due to these stabilization efforts.

The President's reassurances came as disruptions in key shipping lanes, including the Red Sea and the Strait of Hormuz, exacerbated fears of potential shortages in global energy supplies. This led to oil prices surging back above $100 per barrel. A further complication arose when Saudi Arabia temporarily halted operations on its East-West pipeline following an attack on this crucial oil transportation route.