South Korea Discusses Energy Coordination with IEA Amid Iran Crisis

As military conflict between the United States, Israel and Iran has spread across the Middle East with signs of prolonged hostilities, the South Korean government has discussed coordination measures with international organizations.

According to the Ministry of Climate, Energy and Environment on the 3rd, Vice Minister Lee Ho-hyun held an emergency video call with Fatih Birol, Executive Director of the International Energy Agency (IEA). The discussion was prompted by growing difficulties in navigating the Strait of Hormuz due to the conflict between the US, Israel and Iran that began on the 28th of last month.

The IEA is an international organization formed by oil-consuming nations in response to the 1970s oil shock to facilitate emergency oil sharing among member states, curb consumption, and promote alternative energy development against production cuts by oil-producing countries. Its establishment was resolved at the Organisation for Economic Co-operation and Development (OECD) Council in 1974, and it was launched in 1976.

A ministry official said, "During the call, the IEA shared the current situation where oil and gas supply chains are taking a significant hit, including a sharp decline in shipping traffic in the region as oil tankers passing through the Strait of Hormuz have come under repeated attacks." The official added, "Both sides shared concerns that prolonged hostilities could cause serious disruptions to global energy supply and agreed to jointly review response measures for market stabilization."

Executive Director Birol also stated that he would contact major fossil fuel-producing countries regarding this crisis and make every effort to stabilize supply.

Vice Minister Lee said, "The uncertainty in global energy supply chains due to Middle East geopolitical risks is a grave situation." He emphasized, "Our government will share information in real-time with the international community including the IEA to stabilize the rapidly changing global energy market situation as soon as possible, and thoroughly monitor domestic and international energy supply and demand trends."

The Strait of Hormuz is a narrow waterway located between Iran and the United Arab Emirates (UAE), connecting the Persian Gulf and the Indian Ocean. Nearly 25 percent of global oil shipments pass through the strait's shipping lanes, which are only 3 kilometers wide in each direction. Iran has claimed it will completely blockade the Strait of Hormuz in response to this crisis.