South Korea to Cap Fuel Prices Amid Middle East Crisis

South Korean President Lee Jae Myung announced plans to cap domestic fuel prices to counter rising global crude costs due to the Middle East conflict. The government aims to stabilize the economy heavily reliant on global trade. Economic measures will be expanded to tackle financial volatility.

In response to the ongoing Middle East conflict which has caused a spike in global crude prices, South Korean President Lee Jae Myung announced measures to cap domestic fuel prices for the first time in nearly three decades.

Addressing an emergency meeting, Lee revealed a maximum price system for petroleum products experiencing excessive price hikes, indicating the current crisis poses a significant burden on South Korea's energy-dependent economy. The government will also explore alternative energy sources beyond those transiting the Strait of Hormuz.

Lee emphasized the potential expansion of a market stabilization program and urged the central bank to prepare for fluctuations in financial and forex markets. Following Lee's remarks, the South Korean won regained some ground, recovering from its earlier session lows.