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South Korea Nears Kazakhstan Oil Deal as Saudi Pledges Priority Shipments

The pledge points to Seoul's plan to keep fuel flowing despite a blocked Hormuz route.

Overview

  • Industry Minister Kim Jung-kwan said Sunday that a crude deal with Kazakhstan is close and details could come early next week.
  • He said Saudi Arabia will prioritize Korean cargoes as Seoul prepares to route ships to the Red Sea port of Yanbu.
  • The government is weighing naval escorts by the Cheonghae unit’s Dae Joyoung destroyer to protect the Red Sea passage.
  • Seven Korean tankers remain stuck at the Strait of Hormuz with about 14 million barrels onboard, which keeps key supplies out of reach for now.
  • Officials say secured cargoes, including a 24 million–barrel pledge from the UAE, keep imports near 80% without tapping state reserves, while an 869.1 billion won program aims to lift naphtha supply to roughly 80% in April and May.