Gas prices are displayed at a gas station in Seoul, Thursday. Yonhap

The government issued Thursday a precautionary alert over a possible energy supply disruption amid an ongoing geopolitical crisis in the Middle East, the industry ministry said, vowing a stern response to unfair market practices involving energy supply and prices.

The government issued the Level 1, or blue, alert in the country's four-tier national resource security warning system to respond preemptively to a possible disruption in Korea's energy supply due to the Iran crisis, according to the Ministry of Trade, Industry and Resources.

The ministry said the country will raise its readiness against a potential prolonging of the Middle East conflict.

Officials said the country has yet to experience any disruptions in energy supplies and maintains sufficient short-term supply capacity, but issued the alert to preemptively respond to a potential resource crisis and minimize any potential damage to people's livelihoods and domestic companies.

Korea has oil reserves sufficient to last 208 days and is capable of securing alternative supplies of most industrial materials, parts and equipment, according to the government.

Since the U.S. and Israel initiated their attacks against Iran over the weekend, international oil prices have jumped more than 10 percent, with the de facto closure of the Strait of Hormuz, a major oil export route, raising further concerns over energy market volatility.

In response, the government has been working to secure additional oil and gas supplies from regions other than the Middle East, while preparing for the release of oil reserves.

The government also vowed a stern response to unfair market practices, such as illicit oil distribution, hording and profiteering, collusion and price gouging, which it said can exacerbate energy price volatility.

The industry ministry said it will conduct an intensive crackdown on such practices starting Friday, and asked local oil refineries and gas station operators to refrain from excessively hiking prices.

Source: Korea Times News