Lee Hyung-il, the acting Minister of Economy and Finance, said, “We will take all necessary precautions to ensure that domestic oil prices do not rise excessively, and we will implement necessary measures if excessive volatility occurs in the financial markets.”
The acting Minister held a meeting of the ‘Emergency Response Task Force of Related Agencies Regarding the Middle East Situation’ on the 23rd and made these remarks. Earlier, on the 21st (local time), the United States conducted airstrikes on Iranian nuclear facilities, and on the 22nd, the Iranian parliament voted to block the Strait of Hormuz. The final decision is expected to be made by Iran’s Supreme National Security Council, but uncertainty is gradually increasing.
During the meeting, the government reviewed the impact of the Middle East situation on the domestic and international economy and discussed future response plans. Attendees included officials from the Ministry of Economy and Finance, Ministry of Foreign Affairs, Ministry of Trade, Industry and Energy, Ministry of Oceans and Fisheries, Financial Supervisory Service, Bank of Korea, and the International Financial Center.
The acting Minister emphasized, “Given that international oil prices are starting with a rise of 2 to 3%, there is a concern that volatility in international energy prices may increase, so related agencies need to closely monitor and respond to the situation of international energy prices and supply and demand with special vigilance.”
He also stated, “With the reduction of fuel tax being extended, I will ensure thorough checks on illegal activities that take advantage of rising oil prices, centering on the government-wide oil market inspection group, to prevent domestic oil prices from rising excessively.”
In addition, he urged, “Considering that our financial market opens before major countries following the U.S. airstrikes on Iran, please closely observe market trends and immediately implement necessary measures through close collaboration among related agencies if excessive volatility occurs.”
Meanwhile, as of now, there have been no disruptions in the import of crude oil and liquefied natural gas (LNG) since the U.S. airstrikes on Iran, and it has been confirmed that 31 of our vessels navigating near the Middle East are continuing safe operations.
The government plans to monitor the developments of the Middle East situation and trends in finance, energy, exports and imports, shipping and logistics, among other sectors, 24 hours a day, focusing on the joint emergency response task force of related agencies, and to coordinate quickly in accordance with the response plan in case of any unusual developments.