Advertisement
South Korea
This Week in AsiaEconomics

South Korea risks US rift over Iran’s Hormuz Strait squeeze

Any deal with Iran could undermine South Korea’s alliance with the US and their US$350 billion trade deal

4-MIN READ4-MIN
6
Listen
South Koreans protest against US President Donald Trump’s request to send warships to the Strait of Hormuz in front of the US embassy in Seoul on Monday. Photo: TNS
Park Chan-kyong
South Korea finds itself boxed in as Tehran moves to turn the Strait of Hormuz into a bargaining chip amid the US-Israeli war on Iran, leaving Seoul caught between its dependence on Middle East oil and its unwillingness to antagonise Washington.
Economists note that South Korea relies on Washington’s security umbrella to deter threats from nuclear-armed North Korea and that its oil trade is settled in US dollars – two realities that sit awkwardly alongside Iran’s push for yuan-based energy purchases as the price of passage.

“It is unrealistic for South Korea to break away from this long-standing framework and pursue separate negotiations with Iran,” said Nah Won-jun, an economics professor at Kyungpook National University.

Advertisement

“Efforts to diversify energy and material suppliers have fallen short, as the country has remained deeply embedded in the US-led global trade network for decades. However, the costs of operating within this system are rising rapidly, especially for South Korea.”

Iran is reportedly allowing certain vessels through the strait, effectively turning a right of free transit into a privilege dispensed by Tehran.

Advertisement

Iranian Foreign Minister Abbas Araghchi has said the waterway is “open” but “closed only to our enemies”.

Advertisement
Select Voice
Select Speed
1.00x