South Korea Secures 273 Million Barrels of Oil Outside Strait of Hormuz
South Korea secured 273 million barrels of crude oil from the Middle East and Kazakhstan through the end of 2026, with all supplies routed outside the Strait of Hormuz. The country will start receiving 27 million barrels in June as part of this deal.
South Korea has locked in a major oil supply deal to reduce its dependence on risky shipping routes. Presidential chief of staff Kang Hoon-sik announced Wednesday that the country secured 273 million barrels of crude oil from Middle Eastern countries and Kazakhstan.
The key difference: none of this oil will travel through the Strait of Hormuz, a narrow waterway between Iran and Oman where about 20% of global oil passes daily. Tensions in this region have repeatedly threatened worldwide energy supplies.
Saudi Arabia will play a big role in the arrangement. The kingdom pledged to prioritize South Korean companies when allocating and shipping 200 million barrels between June and year-end. Saudi Arabia will also supply as much naphtha as possible through 2026.
South Korea imports nearly all its energy needs, making it vulnerable to supply disruptions. By securing alternative routes, the country aims to stabilize energy costs for businesses and consumers while reducing geopolitical risks.
This move helps South Korea avoid one of the world's most dangerous shipping chokepoints where conflicts could cut off oil supplies. The secured oil would keep South Korea's economy running for more than three months if other supplies were disrupted.
Oil deliveries begin in June with the first 27 million barrels, continuing through the end of 2026.
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