Asian countries have voiced deep concern over the escalating US-Israeli military operations in Iran as oil prices surged to their highest in months with airspace closed and trade routes disrupted.
The foreign affairs committee of South Korea’s National Assembly called an emergency session for Friday to discuss the effects of the strikes, Yonhap reported on Monday.
The day before, Koo Yun-cheol, South Korea’s deputy prime minister and minister of finance and economy, convened an emergency meeting to review the situation following the killing of Iran’s supreme leader Ali Khamenei.
“In particular, the government will respond promptly to the volatility of international energy prices due to the possible instability in the Strait of Hormuz,” Koo said on social media.
About 70 percent of South Korea’s crude oil is imported from the Middle East, with most of it transported through the Strait of Hormuz, which Iran’s Revolutionary Guards have threatened to close.
Global oil prices surged on Monday as the benchmark Brent crude opened 13 percent higher to hit $82 per barrel for the first time since 2024 in Asian trading before dropping back below $77.
In Southeast Asia, Malaysian Prime Minister Anwar Ibrahim said he “unreservedly” condemned the killing of Khamenei as the act places the Middle East on the edge of grave and sustained instability.
“Malaysia’s trade and energy security are directly implicated, and we will act as necessary to safeguard our national interests,” he said on Sunday.
The same day, Singapore’s Foreign Minister Vivian Balakrishnan urged all parties to return to negotiations to achieve a peaceful resolution in accordance with international law and the principles of the United Nations Charter.
Indonesia reemphasized the importance of respecting the sovereignty and territorial integrity of every country and resolving differences through peaceful means.
Thailand said on Monday it has suspended oil exports, with relevant agencies instructed to formulate short — and long-term response plans.
Yang Jun-sok‚ an economics professor at The Catholic University of Korea in Seoul, said, “If the Strait of Hormuz is cut off, then that will lead to a very significant increase in oil prices as well as delays in delivery.”
Any greater effect will depend on whether the US and Iran scale up or down the conflict, Yang said, adding that the current fluctuation is within the normal range.
“If the Strait of Hormuz is blocked, or if other Middle Eastern (oil) production facilities are affected … then that will have major consequences for South Korea,” he said, noting there is no official statement from Iran on the closure of the waterway. “You need to wait and see.”
The conflict may give countries reliant on imports of energy and natural resources additional reasons to find alternative energy sources, Yang said.
In a report published on Monday, Singapore-based United Overseas Bank said it is important to note that Iran has not openly targeted oil tankers plying the region.
However, noting that regional air hubs, including Dubai’s key international airport, are closed, it said the latest escalation in conflict is “decidedly” more serious than the relatively brief missile strike by the US on Iran’s nuclear facilities in June.
Contact the writers at kelly@chinadailyapac.com