Seoul: South Korean President Lee Jae Myung has directed authorities to swiftly implement a cap on domestic fuel prices in response to escalating gas prices and volatility in foreign exchange markets, driven by the intensifying crisis in the Middle East.

According to Anadolu Agency, President Lee presided over an interministerial meeting to discuss recent developments as US-Israeli military actions against Iran and Tehran's retaliatory measures have caused Brent oil prices to exceed $100 per barrel. The volatility has significantly impacted the South Korean economy, which depends heavily on global trade and energy imports from the Middle East.

Lee emphasized the importance of preparing for worst-case scenarios to mitigate economic repercussions from the Middle East tensions. He urged the implementation of financial stability measures and the search for alternative energy routes to address the crisis's impact.

"As it is difficult to predict how the situation will unfold, the government must prepare preemptive response measures with a sense of urgency, keeping even the worst-case scenario in mind," Lee stated. Additionally, he instructed his administration and the Bank of Korea to consider expanding the 100 trillion-won ($66.8 billion) market stabilization program if necessary to address rising market volatility.

In response to concerns about disruptions in energy supplies through the Strait of Hormuz, Lee highlighted the need for Seoul to work with strategic partners to identify alternative energy routes promptly. The ongoing conflict, which began with a US-Israeli attack on Iran on February 28, has resulted in significant casualties, including the death of Iranian Supreme Leader Ali Khamenei, and has led to a reduction in maritime traffic through the vital Strait of Hormuz.