South Korea signs deal to import oil from UAE without passing through Strait of Hormuz
South Korea struck a deal on Friday to import about 4 million barrels of oil from the United Arab Emirates, boosting its supplies amid a war in the Middle East that is disrupting energy markets.
Following the start of the US-Israeli war on Iran on Saturday, Tehran announced that it controls the vital Strait of Hormuz, through which about 20% of the world’s oil and liquefied natural gas supplies pass.
South Korea, which relies heavily on oil transported through the strait, said it had sent oil tankers to secure other sources of refueling.
“We plan to dock two South Korean-flagged tankers, each with a capacity of 2 million barrels, at alternative ports in the United Arab Emirates that don’t require transit through the Strait of Hormuz,” said Kang Hoon-sik, director of the South Korean president’s office.
According to Kang, Seoul also received a guarantee that up to two million barrels of strategic reserves held jointly by the UAE and South Korea can be made available at any time, once an order is placed.
South Korea is the world’s fourth-largest importer of crude oil, according to US government data.
According to the South Korean government, about 70% of the crude oil Seoul imports passes through the Strait of Hormuz.
