South Korea secures oil supply deal with UAE amid regional tensions
South Korea has reached an agreement with the United Arab Emirates to ship around four million barrels of crude oil. The move comes as energy markets are disrupted by the US-Israel war on Iran and Iran's claim of control over the Strait of Hormuz. Kang Hoon-sik, South Korea's presidential chief of staff, confirmed that tankers have been dispatched to alternative UAE ports. The deal aims to strengthen South Korea's energy security as the country relies heavily on oil passing through the region.
What we know
- South Korea arranged to ship approximately four million barrels of oil from the United Arab Emirates.
- Kang Hoon-sik stated that two South Korean-flagged tankers, each with a two million barrel capacity, will berth at UAE ports that avoid the Strait of Hormuz.
- The UAE pledged that up to two million barrels from jointly held strategic reserves in South Korea can be released upon request.
- Iran claims control over the Strait of Hormuz, a key route for global oil shipments.
- About 70 percent of South Korea's crude oil imports pass through the Strait of Hormuz.
