Seoul: Finance Minister Koo Yun-cheol called Friday for a preemptive government response to volatility in the financial and energy markets stemming from geopolitical uncertainties in the Middle East, the finance ministry said.

According to Yonhap News Agency, Koo ordered ministry officials to closely monitor the financial markets and the economy amid escalating tensions in the Middle East and take preemptive measures if needed. The minister emphasized the importance of managing energy prices to minimize additional burdens on citizens' livelihoods, as fuel prices have sharply increased following recent airstrikes by the United States and Israel on Iran.

As of 9 a.m., the average price of gasoline in Seoul reached 1,916.5 won (US$1.30) per liter, marking a 27.5 won increase from the previous day and breaching the 1,900 won mark for the first time since August 2022, according to data from the Korea National Oil Corp.

First Vice Finance Minister Lee Hyoung-il also urged government officials to exert all efforts for a stable supply of energy and food products during a vice ministerial meeting on prices. South Korea's consumer prices grew 2 percent from a year earlier in February, meeting the government target for the second consecutive month. However, the inflation outlook has worsened as the Middle East turmoil is putting upward pressure on energy costs.

To stabilize domestic energy prices, the government has pledged a stern response to any unfair market practices involving energy supply and prices. Relevant authorities have begun intensive monitoring to prevent potential price gouging by gas stations nationwide.

The government is also working to secure oil supplies from regions outside the Middle East due to the de facto closure of the Strait of Hormuz, issuing a precautionary alert regarding possible resource disruption.

In a related development, the state-run Korea National Oil Corp. (KNOC) announced it has secured 2 million additional barrels of crude oil from Kuwait under an international stockpiling agreement with Kuwait Petroleum Corp. in 2024. As of the end of February, KNOC reported that the combined oil reserve of its nine storage facilities across the country stood at 100 million barrels. The government previously stated that the country holds oil reserves sufficient to last 208 days.