South Korea discusses Middle East oil risks with refiners amid price volatility

South Korea’s ruling People Power Party held a policy briefing with major oil refiners in the National Assembly on March 19 to discuss the Middle East crisis and its spillover into global energy markets. The meeting brought together PPP lawmakers and executives from SK Energy, GS Caltex, Hyundai Oilbank, S-OIL, and the Korea Petroleum Association, among others.

PPP floor leader Song Eonseok warned that global energy markets have become highly uncertain amid the Iran-related crisis and that policymakers should prepare for the worst-case scenarios rather than optimistic hopes. He said if the conflict does not stabilize within March, real supply disruptions could emerge, calling for a coordinated response that links diplomacy, security, and industry decisions.

Jeong Jeom-sik, the policy committee chair, acknowledged that oil price volatility driven by the Middle East war imposes burdens on refiners. He said the industry representatives would be candid during the meeting and promised to seek ways to provide practical support.

Lawmakers heard from Park Su-Young, a ranking member of the opposition’s Budget and Finance Committee, who highlighted the impact of Hormuz-related disruptions. She noted that 26 ships and 183 Korean seamen are effectively stranded due to Iran's blocking of the Hormuz Strait and urged the government to move beyond caution toward a proactive stance, including declaring that the Korean military will escort Hormuz if necessary.

During the briefing, industry officials pressed several policy asks: to share timelines for releasing strategic petroleum reserves, to increase support for diversifying import sources and offset higher shipping costs, to defer fuel taxes and tariffs, and to exempt the individual consumption tax on certain heavy fuel oil used as raw materials.

The attendees included Park Ju-sun, president of the Korea Petroleum Association, along with executives from SK Energy, GS Caltex, Hyundai Oilbank, and S-OIL. The session was part of ongoing discussions within Seoul about how South Korea should respond to volatile energy markets and potential disruptions in global supply chains.

From a U.S. perspective, Hormuz remains a critical maritime chokepoint through which a significant portion of global crude shipments flows. Developments in the Persian Gulf region can influence energy prices, supply chains, and security calculations that affect American energy markets, inflation dynamics, and defense policy. South Korea’s stance on energy security and its potential military posture in the region could have broader implications for allied cooperation, regional stability, and global energy reliability.