Seoul: The government has announced an extension of its crude oil swap system with private firms until the end of June, as uncertainties persist around the Strait of Hormuz, a vital oil shipping route. This decision was confirmed by the industry ministry on Tuesday.

According to Yonhap News Agency, the oil swap initiative was originally introduced in April to stabilize domestic fuel supplies in the wake of the U.S.-Israeli conflict with Iran. The system allows the government to lend crude stockpiles, primarily from the Middle East, to oil refiners. These refiners are required to replenish the stock once alternative supplies become available. Initially, the system was designed for a two-month period, set to conclude at the end of May.

So far, the government has managed to trade a total of 21 million barrels of oil reserves with private companies, as reported by the Ministry of Trade, Industry and Resources. The ministry further indicated that South Korea has secured approximately 85 percent of its pre-Iran war oil supplies to meet demands throughout July. Consequently, no significant disruptions in crude supplies are anticipated in August.