In a bid to mitigate supply chain risks, South Korea is set to dispatch five oil tankers to the Red Sea port of Yanbu in Saudi Arabia, according to a ruling party MP. This strategic move aims to create alternative routes for crude oil imports, thereby circumventing the Strait of Hormuz.
Ahn Do-geol, a member of parliament, emphasized the need for Korean-flagged vessels to be deployed on alternative routes, ensuring a stable supply of crude oil through export channels that bypass the Strait of Hormuz. Details of the plan remain scarce, but it is understood that five South Korean-flagged vessels will be sent to Yanbu port in Saudi Arabia.
The decision comes as oil prices have skyrocketed due to the ongoing US-Israeli conflict with Iran, posing significant growth and inflation risks for South Korea. The country relies heavily on Middle Eastern crude for approximately 70 percent of its oil imports.