South Korea Bets on Red Sea Route as Hormuz Disruptions Persist

AI Summary

Due to disruptions in the Strait of Hormuz caused by the Iran war, South Korea has increasingly relied on the Red Sea route and the Saudi export terminal of Yanbu to ship oil to Asia. Previously, South Korea depended heavily on shipments via the Strait of Hormuz for the majority of its crude oil and naphtha imports. This shift reflects strategic adjustments in energy supply routes amid geopolitical tensions.

Since the Iran war disrupted shipments through the Strait of Hormuz in early March, South Korea has been increasingly betting on the Red Sea route and the Saudi export terminal of Yanbu to load oil on tankers and ship it to Asia. Before the Iran war began, South Korea depended on cargoes transited via the Strait of Hormuz for as much as 61% of its crude oil imports and 54% of its naphtha imports. South Korea, one of Asia’s biggest economies and one of the largest energy importers in the region, has sought to diversify its crude imports not…