South Korea Aims to Cut Middle East Crude Reliance to 50% by 2035

South Korea aims to reduce its dependence on Middle East crude imports to 50% by 2035, according to the country's industry ministry, Reuters reports. The ministry has drafted a 10-year natural resource security plan, which envisions a "fundamental shift" in the way South Korea sources its crude oil imports. Currently, South Korea imports up to 70% of its crude oil from Middle Eastern producers, with most of it transiting through the Strait of Hormuz.

The country also imports a significant amount of gas from the Middle East, although its dependence on Middle Eastern gas is much lower, accounting for just a fifth of total imports last year. Over the next ten years, South Korea intends to minimize reliance on Middle Eastern suppliers for more than 30% of its gas imports. The nation is among the world's most energy-import dependent countries, making it highly susceptible to disruptions in the Hormuz region.

In response to the ongoing Persian Gulf conflict, Seoul imposed fuel price caps and vehicle restrictions for civil servants in March to mitigate potential fuel shortages. Since then, South Korea has been focusing on diversifying its supplier network to ensure long-term stability in the supply of vital energy commodities.