Seoul, June 19 (IANS) South Korea’s energy supply has yet to experience any disturbance from the Israel-Iran conflict, Seoul’s industry ministry said on Thursday, noting it is maintaining an emergency mode in response to escalating tensions in the Middle East.

The Ministry of Trade, Industry and Energy held an emergency meeting with officials from the local refinery industry to check the supplies and prices of oil and gas and discuss response measures to uncertainties stemming from the Middle East, reports Yonhap news agency.

The ministry said Seoul has not received any reports of disruption in imports of oil and liquefied natural gas (LNG), and that all Korean oil tankers and LNG carriers around the affected region are under normal operation.

Korea currently has oil reserves that could last approximately 200 days and gas reserves exceeding the legally mandated level, the ministry explained.

The government will prepare responses to possible situations that could affect Korea’s energy supply, such as closure of the Hormuz Strait, while working to stabilize energy prices, it added.

Global oil prices had surged over 20 percent to US$76.70 per barrel as of Wednesday compared with end-May, according to the ministry, after Israel conducted pre-emptive airstrikes on Iranian military and nuclear facilities, and Iran hit back.

To cushion the blow, the Seoul government decided earlier this week to extend its fuel tax cuts, originally set to end in June, through August.

It also plans to conduct on-site inspections to crack down on the sale of counterfeit petroleum products.

“We will do our best to minimize the impact of Middle East tensions on domestic oil and gas supplies and their prices,” said Yoon Chang-hyun, director general for resources industry policy at the ministry.

Meanwhile, South Korea has won a 52 million-euro ($59.6 million) deal to supply a key component for the construction of an international experimental fusion reactor being built in France, the science ministry here said.

A memorandum of understanding (MOU) has been signed to provide power supply systems for the reactor, part of Seoul’s continued contribution to the International Thermonuclear Experimental Reactor (ITER) project, according to the Ministry of Science and ICT.

–IANS

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