South Korea's government vowed to deploy all resources to stabilize financial markets amid escalating Middle East tensions and the U.S. Federal Reserve's rate freeze. Finance Minister Koo Yun-cheol emphasized 24-hour monitoring of foreign exchange markets with timely interventions if needed. Authorities also raised the crude oil supply disruption alert to Level 2 and secured 24 million barrels from the UAE.
From March 18 to 19, 2026, South Korea's government announced successive measures to address market unrest triggered by the U.S.-Israel-Iran war in the Middle East. At a macroeconomic and financial issues meeting on the 19th, Finance Minister Koo Yun-cheol stated, “We will closely track FX market conditions and take timely action if the movement of the Korean won deviates excessively from its underlying fundamentals.” The government and Bank of Korea plan emergency bond buybacks for market stabilization, conduct stress tests across the financial sector, and prepare to expand a market stabilization program of at least 100 trillion won (US$66.6 billion). The U.S. Federal Reserve's rate freeze was expected, but uncertainties persist due to surging oil prices and supply chain disruptions from the Iran crisis. On the 18th, an interagency meeting led by the foreign ministry discussed safety and potential evacuation of South Korean vessels and crew in the Strait of Hormuz. The Ministry of Trade, Industry and Resources raised the crude oil supply disruption alert from Level 1 to Level 2 (yellow), enabling priority access to international reserves and alternative supplies bypassing the strait. Presidential chief of staff Kang Hoon-sik announced after a UAE visit that the UAE pledged top-priority crude oil supply to South Korea, securing a total of 24 million barrels, including an additional 18 million (6 million via UAE vessels, 12 million via Korean vessels). Additional measures include a temporary fuel price cap—the first since 1997—and reviews of energy-saving strategies ordered by President Lee Jae Myung. Natural gas remains at Level 1 alert.
