Sejong: South Korean President Lee Jae Myung urged the government Tuesday to prepare for the worst-case economic fallout if the Middle East conflict persists, according to a local media report. Speaking at a Cabinet meeting in Sejong, Lee warned that the US-Israeli war in Iran, now in its third week, has disrupted traffic in the Strait of Hormuz, a key global oil shipping route, posing risks to South Korea's energy-dependent economy, Yonhap News Agency reported.

According to Anadolu Agency, Lee emphasized the need for measures to address a potential prolonged crisis, calling for intensified diplomatic efforts to secure crude oil and alternative energy sources. He also suggested possible emergency measures, including export controls and increased nuclear power plant operations.

South Korea has already implemented a fuel price cap system and secured 6 million barrels of crude from the United Arab Emirates. Lee noted that fuel prices have stabilized somewhat but warned that further escalation could threaten price stability and people's livelihoods.

He called for the swift preparation of a supplementary budget to support vulnerable groups, export companies, and non-capital regions, urging the National Assembly to review the proposal promptly.

Tensions in the Middle East have escalated since the US and Israel launched a large-scale attack on Iran on Feb. 28, resulting in more than 1,300 casualties, including the then-Supreme Leader Ayatollah Ali Khamenei. Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets.

The closure of the Strait of Hormuz by Iran since early March has pushed oil prices higher, affecting the shipping lane that typically handles about 20 million barrels of oil a day, roughly 20% of the global supply.