South Korea Diversifies Oil Imports Amid Strait of Hormuz Blockade

Following U.S.-Israeli strikes on Iran in February 2026 and a subsequent naval blockade of Iranian ports ordered by Donald Trump, South Korea faced a severe energy crisis. With 70% of its oil originating from the Middle East and the Strait of Hormuz effectively shut down, the government of President Lee Jae Myung implemented a $17.7 billion emergency budget to stabilize domestic demand and subsidize higher shipping costs for non-Middle Eastern crude.

To mitigate the disruption, Seoul aggressively diversified its supply chain. Presidential aide Kang Hoon-sik secured 273 million barrels of crude and 2.1 million tons of naphtha from Oman, Saudi Arabia, Qatar, and Kazakhstan. Additionally, South Korean refiners increased imports of Canadian crude via the Trans Mountain Expansion pipeline, utilizing government-held Middle Eastern reserves for swaps to incentivize the shift. Diplomatic envoys were also dispatched to Algeria, Libya, and the Republic of the Congo to establish new energy routes.

Maritime efforts focused on rescuing 26 stranded vessels and 170 crew members. While Seoul shared vessel data with Iran and the U.S. to ensure safe passage, Foreign Minister Cho Hyun stated the government would not pay Iran tolls or compensation. In a strategic breakthrough, South Korea successfully utilized the Red Sea route, loading oil at the Saudi port of Yanbu and transiting the Bab-el-Mandeb Strait. President Lee Jae Myung characterized this as a valuable achievement in securing energy stability during the conflict.