International oil prices approach $120, South Korea plans to implement oil price cap for the first time in nearly 30 years

Golden Ten Data, March 9 – As the ongoing Middle East conflict continues to drive up global oil prices, the South Korean government has taken emergency action. South Korean President Lee Jae-myung called for the "swift introduction and bold implementation of a maximum oil price system" at an emergency economic meeting on Monday to curb excessive price increases. Lee made these remarks as international oil prices approached $120 per barrel, reaching their highest level since 2022. Production cuts by Middle Eastern oil-producing countries, the ongoing blockade of the Strait of Hormuz, and the escalation of the conflict threatened by the United States have all contributed to sustained pressure on the energy market. South Korea relies almost entirely on imports for its energy needs, with about 70% of its oil transported through the Strait of Hormuz. The proposed oil price cap mechanism would be the first time in nearly 30 years that South Korea has employed such a measure, aiming to mitigate the impact of geopolitical turmoil on the domestic energy supply chain.