Gov't to lower security alert on crude by a notch as U.S.-Iran tensions ease

The government plans to lower the resource security crisis warning for crude oil by a notch to Level 2, the vice industry minister said Tuesday, following the stabilization of global oil prices amid progress in peace talks between the United States and Iran.

Vice Industry Minister Moon Shin-hak made the remark during a Cabinet meeting held at the presidential office, adding the alert for natural gas will be fully lifted as well.

Korea operates a four-tier national resource security crisis warning system based on the severity of supply disruptions and their impact on the national economy.

The government first issued the lowest alert for crude oil in early March, which was raised to Level 2 later that month and eventually to Level 3 in April.

Korea has also maintained a Level 2 alert for natural gas since April.

Moon said more crude oil is being imported via routes that bypass the Strait of Hormuz, with the country also securing imports from regions beyond the Middle East, including the United States.

Consequently, the government will also fully lift the vehicle rotation system, scrapping its original plan to ease the rule based on whether a vehicle's license plate ended in an odd or even number to a five-day rotation.

Yonhap