South Korea draws Gulf oil storage interest as Hormuz stays closed

The prolonged closure of the Strait of Hormuz since late February 2026 has disrupted global oil flows, forcing Gulf producers to seek alternative storage. South Korea, which imports most of its crude via the strait, now finds itself a target for inquiries from Saudi Arabia, Kuwait, and the UAE. According to Yang Gi Uk, head of the Ministry of Trade, Industry and Energy's Industry and Resource Security Office, several countries have approached Seoul about storing oil at its national reserve bases. The move allows Gulf states to mitigate the risk of being unable to export crude as their own storage tanks near capacity.

South Korea's combined oil reserve capacity of 146 million barrels, managed by the Korea National Oil Corporation (KNOC), is the world's sixth largest. Developed after the oil crises of 1973 and 1979, these underground facilities are designed for long-term strategic storage. By offering space to Gulf producers, South Korea not only earns storage fees but also strengthens its energy security foothold. The arrangement could reshape global oil logistics, shifting some strategic reserves out of the Middle East for the first time at scale.