Government Raises Oil Resource Security Alert to 'Caution'... Adjusting Timing for Release of Reserves

Oil Prices Surge 40%, Fears of Hormuz Blockade
Timing for Release of 22.46 Million Barrels of Strategic Reserves Under Discussion

On the first day of implementing the maximum oil price system on the 13th, Kim Jeongkwan, Minister of Trade, Industry and Energy, visited a gas station in Mapo, Seoul, and conducted quantity verification and on-site inspection with officials from the Korea Petroleum Safety Authority. 2026.03.13 Photo by Dongju Yoon

As instability in the Middle East shows signs of becoming prolonged, the government has raised its level of response to the crude oil supply crisis.

The Ministry of Trade, Industry and Energy announced that, as of 3 p.m. on March 18, the resource security crisis alert level for crude oil would be raised from "Attention" to "Caution." This decision was made after a comprehensive review of recent surges in international oil prices, deteriorating conditions for crude oil transport, and increased uncertainty across supply chains, trade, and industry overall.

The resource security crisis alert is operated in a four-level system: "Attention," "Caution," "Warning," and "Serious." It is issued according to the National Resource Security Act, reflecting the severity of the crisis and its potential economic impact.

Since the onset of the Middle East crisis, the government has been gradually strengthening its response system. On February 28, it formed an "Emergency Response Task Force," held four inspection meetings chaired by the minister and vice ministers, and, starting March 3, has operated the "Middle East Situation Response Headquarters," led by the vice minister, to monitor crude oil and gas supply and demand and their industrial impact on a daily basis.

This latest escalation comes amid increasing instability in major oil-producing countries in the Middle East, as well as the rising likelihood of partial production disruptions and export restrictions due to damage to production and transportation facilities. Concerns over a blockade of the Strait of Hormuz have further heightened instability in shipping routes, and the price of Brent crude has surged by approximately 40%, contributing to significant market volatility.

On the other hand, the crisis alert level for natural gas will remain at "Attention." Despite continued increases in international prices following Qatar’s declaration of force majeure, domestic storage levels exceed the legally required minimum, and authorities have secured enough alternative supplies to last through the end of the year, even if imports from Qatar are halted. The introduction of non-Middle Eastern supplies is also proceeding without issue.

In line with the heightened oil crisis alert, the government plans to simultaneously strengthen both supply expansion and demand management measures. It is currently discussing the specific timing and volume for the release of 22.46 million barrels of strategic reserves secured through the International Energy Agency (IEA) joint response, while also working to secure alternative supplies through routes bypassing the Strait of Hormuz and to import production from overseas sources.

On the demand side, the government will implement mandatory energy-saving measures in the public sector, encourage voluntary reduction campaigns in the private sector, and, if necessary, consider mandatory demand reduction measures.

Additionally, to ensure the successful implementation of the oil product price ceiling system, which has been in effect since March 13, the government will strengthen crackdowns on market-disrupting activities such as fake oil sales, hoarding, and price collusion through a joint government inspection team and the Korea Petroleum Management Service Oil Call Center.

Minister of Trade, Industry and Energy Kim Jeong-kwan stated, “The government will respond swiftly to changing circumstances to ensure both crude oil supply stability and public livelihood stability,” adding, “We ask the public to join us in overcoming this crisis.”

This content was produced with the assistance of AI translation services.