The US-Iran conflict causes international oil prices to approach $120, and the Korean industry enters a state of emergency.

Recent escalation of the US-Iran conflict has caused international oil prices to surge, approaching $120 per barrel. This has created an urgent situation for South Korea’s industries, facing significant increases in electricity, raw materials, and logistics costs.

As South Korea imports a large amount of energy from the Middle East, there are concerns that if the situation persists, the country could face an “energy crisis” similar to Germany’s reliance on Russian natural gas. Especially if the Strait of Hormuz, a major global oil transportation route, is blocked, energy supplies could face severe disruptions.

In response to these economic challenges, the government is working with the International Energy Agency to release strategic reserves and plans to implement a maximum oil price cap domestically to stabilize prices. Authorities stated they will use the Singapore crude oil spot market price as a benchmark and control refinery supply prices to address the surge in oil prices.

The spike in oil prices has particularly impacted the aviation, petrochemical, and automotive industries. The airline industry faces huge cost pressures due to rising fuel expenses, while the petrochemical sector is experiencing increased production costs from higher raw material prices. Meanwhile, the automotive industry worries that high fuel prices will reduce consumer purchasing power. These industry shocks could have negative ripple effects on the overall economy.

Although oil prices temporarily declined after this event, ongoing instability in the Middle East keeps the situation tense. The international community needs multi-faceted efforts to maintain energy stability, with continuous policy responses and cooperation being crucial. Future economic trends and market impacts require careful assessment, and the government must stay alert to changing circumstances.