South Korea strikes crude oil deal with UAE

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South Korea struck a deal Friday to ship around four million barrels of oil from the United Arab Emirates, bolstering supplies as the US-Israel war on Iran upends energy markets.

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Iran claims it is now in control of the crucial Strait of Hormuz, the Gulf chokepoint through which a fifth of the world’s crude oil flows.

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Heavily reliant on oil shipped through the strait, South Korea said it had dispatched tankers to secure alternative supplies of fuel.

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“We plan to immediately berth two South Korean-flagged oil tankers — each with a capacity of 2 million barrels — at alternative ports within the UAE that do not require passage through the Strait of Hormuz,” said presidential chief of staff Kang Hoon-sik.

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Seoul also secured a pledge that “up to 2 million barrels from the jointly held strategic reserves that the UAE stores in South Korea can be made available at any time upon request,” Kang said.

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South Korea is the fourth-largest importer of crude oil in the world, according to US government figures.

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About 70 percent of the crude oil South Korea imports passes through the Strait of Hormuz, according to the government.

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AFP

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