President Lee Jae-myung on the 12th said, "I want to tell the people that you need not worry at all when it comes to oil prices."
That afternoon on X (formerly Twitter), the president said, "People, do not worry. Prices of refined products such as gasoline and diesel will remain stable," and stated accordingly.
With clashes between the United States and Iran intensifying recently, disruptions to crude shipments through the Strait of Hormuz are worsening. The East–West oil pipeline that Saudi Arabia, the world's largest crude exporter, has used to bypass the Strait of Hormuz was also hit by a drone attack, leading to a temporary shutdown. The expansion of Yemen's Houthi rebels is even threatening the alternate route through the Red Sea. On the 11th (local time), Brent and West Texas Intermediate (WTI) futures settled at $104.61 and $100.05 per barrel, up 8.7% and 9.4% for the week, respectively.
The president said, "By strengthening oil diplomacy, including dispatching special envoys for crude oil, we have diversified import sources and, with measures such as subsidizing long-haul crude transport costs, already lowered Korea's crude dependence on the Middle East from 70% to the 50% range in just a few months," adding, "We will continue to push strongly for diversification of imports going forward."
He went on to say, "By introducing a strategic petroleum reserve swap system, we are maintaining stability of crude supply without depleting strategic reserves," and explained, "Although crude and international refined product prices are surging, domestic refined products are maintaining stable prices and supply volumes without strain through a price cap and controls on export volumes."
In addition, the president said, "We have completely blocked hoarding and collusion, and by selecting 'very virtuous gas stations,' we are maintaining a framework of fair competition and thoroughly shutting down market disruption," and emphasized, "Domestic refiners are seeing large profits from the surge in international refined product prices, and the government is covering losses from domestic price and export volume controls, so they are experiencing an unprecedented boom."
Even so, the president assessed that dependence on the Middle East for crude imports remains high at 50%, saying, "No one knows when the war will end, and the oil market is sinking into a quagmire," and added, "We will do our utmost to secure smooth crude shipping routes and ensure the safety of crude carriers and their crews."