![Oil tanker transiting the Strait of Hormuz. [Photo=Yonhap]](https://image.ajunews.com/content/image/2026/04/21/20260421112720515421.jpg)
Yang Gi-uk, director general for industrial resources and security at the Ministry of Trade, Industry and Energy, said at a Middle East war response task force briefing on the 21st that some domestic refiners with contracts had been notified of Kuwait’s move. “Since the Strait of Hormuz has been blocked since the Middle East war, the force majeure will not affect us,” he said.
Kuwait Petroleum Corp., the state oil company, sent letters to counterparties on the 16th notifying them it was invoking a force majeure clause. With the Strait of Hormuz closed, tankers have been unable to enter or leave the Persian Gulf, making it difficult to meet scheduled deliveries on time.
Yang said the declaration did not appear to reflect damage to refining facilities, but rather a contractual step as April loading dates were ending. He said if the strait remains closed, Kuwait could declare force majeure on subsequent volumes as well.
On the possibility of bringing in additional Russian crude and petroleum products, Yang said interest is low even after the United States on April 17 (local time) extended a sanctions easing related to Russian exports for one month. While transactions must be completed within that month, refiners have secured 70 million barrels of alternative supplies through the end of May, he said.
Yang said the U.S. move reduced some risk, but “EU risk remains,” noting that many South Korean vessels rely on European Union insurers. That, he said, has kept interest in additional Russian supplies limited.
On additional naphtha imports, Yang said companies are monitoring volumes based on experience from last month’s sanctions easing, but are still sounding out alternatives. “It does not appear companies are throwing everything into it,” he said.
Yang also addressed the fourth round of South Korea’s oil products price cap system, set to take effect at midnight on the 24th. He called it an emergency measure chosen amid unstable global oil prices, and said the government is preparing to decide by weighing household economic conditions, fiscal burden, demand reduction and consumption patterns by fuel type.
According to the ministry, Japan’s gasoline prices are 23.8% lower than South Korea’s and diesel prices are 28.3% lower. In the United States, gasoline prices are 20.8% lower, while diesel prices are 8.7% higher.
Yang said Japan is believed to be deploying subsidies on a massive scale, and the United States has seen a sharper rise in prices than South Korea. He said South Korea should judge whether a price cap is suppressing prices by reviewing other countries’ cases.
Asked about speculation that gasoline prices could rise more sharply as part of demand management, Yang said gasoline and diesel consumption are moving differently and it is difficult to discuss price increases or cuts at this stage. He said a decision would be made after considering a range of views.
Yang also commented on a Malta-flagged tanker that recently exited the Strait of Hormuz and is heading to South Korea. He said it was not among the seven tankers in the Persian Gulf that the ministry previously announced, adding it was excluded because the government judged the likelihood of receiving its cargo was low. He described it as “a highly exceptional situation.”
* This article has been translated by AI.
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