Korea's Crude Oil Imports Soar on Higher Costs Amid Strait of Hormuz Tensions

The Strait of Hormuz blockade has led to increased global oil prices and higher costs for South Korea's crude oil imports. According to data from the Korea International Trade Association, the country's crude oil import value rose by 21.1% year-over-year to $30.23 billion between March and June.

Despite a decrease in import volume of 14.7%, down to 38.5 million tons from 45.1 million tons last year, the higher costs are attributed to disruptions in the supply and demand of Middle Eastern crude oil due to the blockade and soaring global prices.

The Ministry of Trade, Industry and Energy reports that the country has secured over 110% of its crude oil needs for July and August compared to the previous year's average, but concerns over supply chain instability and rising prices are growing as tensions expand from the Strait of Hormuz to the Red Sea.