SOUTH KOREA PERSPECTIVE

Seoul, June 21, 2026. For South Korea, a major energy importer, the Strait of Hormuz crisis is not an abstract geopolitical concern—it registers directly at the pump. The Ministry of Foreign Affairs reaffirmed on Sunday South Korea's official position: "Our fundamental stance is that freedom of navigation and the security of all vessels, including South Korean ships, in the Strait of Hormuz must be guaranteed without delay," a spokesperson told Korea Herald. The government says it maintains "close communication" with Washington and relevant nations.

On the economic front, the US-Iran memorandum of understanding is already affecting fuel prices. According to the Opinet system managed by the Korea National Oil Corporation, the average gasoline price fell by 0.7 won per liter in the third week of June, reaching 2,009.2 won per liter (approximately 1.31 dollars). In Seoul, where prices typically run highest, the rate stands at 2,051.2 won per liter. Diesel also dropped 0.7 won to 2,004.1 won. This marks the fifth consecutive week of decline, directly correlated with the easing of tensions between Washington and Tehran. KBS World emphasized that "the magnitude of the decline remains limited due to continuing Israeli operations in Lebanon."

The situation remains unstable, however. Iran has indicated the possible introduction of "insurance fees" for vessels transiting the strait via the Persian Gulf Strait Authority, though it specified these would remain "free of charge" for now. The authority reserves "the right to introduce insurance fees in the future." Meanwhile, Donald Trump posted on Truth Social that the United States might itself impose tolls if a final agreement with Iran is not reached within sixty days. He justified this possibility by referencing America's role as the region's "guardian."

Against this backdrop, direct negotiations between Washington and Tehran launched on Sunday in Switzerland at Bürgenstock are being closely watched from Seoul. Vice President JD Vance joined special envoy Steve Witkoff and Jared Kushner for discussions with the Iranian delegation led by Foreign Minister Abbas Araghchi and Parliamentary Speaker Mohammad Bagher Qalibaf. According to Korea Times, Pakistan, which serves as a mediator, is also participating in the talks. These discussions aim to transform last week's memorandum of understanding into a formal agreement on Iran's nuclear program.

For Seoul, the stakes are unambiguous: the Strait of Hormuz accounts for one-fifth of global oil trade and a substantial portion of liquefied natural gas deliveries—two flows vital to an economy that imports nearly all its energy. Falling pump prices are thus welcomed, but they remain fragile until the outcome of the Bürgenstock negotiations becomes clear.