Korea has enough crude oil lined up to get through September even if the Red Sea closes, the government said Tuesday, after Yemen's Houthi rebels declared a naval blockade of Saudi Arabia and reopened questions about shipping routes through the Middle East.
Crude arriving in July and August has been secured at more than 110 percent of last year's monthly average, and September volumes stand at more than 90 percent of last year's level, the Ministry of Trade, Industry and Resources said.
"Supply is confirmed to be sound through September," said Yang Ki-wook, who directs the ministry's industrial resources security office."Even if the Red Sea is blocked, we do not expect particular problems."
The Houthis, who are backed by Iran and control much of southwestern Yemen, announced the blockade on Monday. They also command the Bab el-Mandeb Strait at the southern entrance to the Red Sea, and a closure there would cut one of the last routes still carrying Gulf crude to Asian buyers. Saudi Arabia has been pumping oil across the country to the Red Sea port of Yanbu and shipping it out through the strait since the Strait of Hormuz became unreliable.
Asian economies that lean on Middle Eastern crude would feel a Red Sea shutdown first, and the Suez Canal and other alternative routes have been raised as fallbacks.
Vessels at the Strait of Hormuz, as seen from Musandam, Oman, July 17.REUTERS/YONHAP
The ministry said Red Sea traffic is running normally so far and that it is watching closely.
"Ships are still moving through the Red Sea as normal, and we are monitoring it continuously," Yang said. "If a blockade becomes real, things could get difficult, but this is not the stage for acting on hypotheticals. If it becomes necessary, we will arrange alternatives such as the Suez Canal."
One option, should the region stay unsettled, is to restart the strategic reserve swap program that was wound down after the United States and Iran reached a cease-fire in June. The scheme lends government-held crude to refiners to cover gaps between shipments.
"With July and August volumes secured at more than 100 percent, there is no reason to restart it," Yang said. "We will review it as we watch how things develop."
Six tankers bound for Korea have passed through the Strait of Hormuz since the United States and Iran signed the memorandum of understanding that halted the fighting, the ministry said. Three have already docked and the other three are due this week.
That truce has since broken down. Washington reimposed sanctions on July 7 after reports that tankers had been hit. The two sides have exchanged fire since, and Iran has closed the Strait of Hormuz again.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
