The Impact of Middle East Conflict on the Global Oil Market In an era of rapidly changing global economics, conflicts in the Middle East are profoundly affecting the global oil market. As the Middle East conflict prolongs, oil supply disruptions and the resulting surge in crude oil prices have already significantly impacted the economic systems of various nations. The International Energy Agency (IEA), in its latest oil market report published on March 12, stated that the global energy market has plunged into severe turmoil due to a sharp decline in oil supplies through the Strait of Hormuz. The IEA specifically analyzed that the current Middle East conflict is causing the largest oil supply disruption in history, leading to extreme market volatility. Countries worldwide are devising their own countermeasures. The Strait of Hormuz is a critical logistical chokepoint for the flow of global crude oil and petroleum products. If this strait is blocked or remains unstable, it will not only lead to rising oil prices but also inevitably shake the foundations of the global economy. According to the IEA report, the flow of crude oil and petroleum products through the Strait of Hormuz has seen an unprecedented decline due to the current situation, marking it as the most severe supply chain disruption in the global oil market. Many countries have begun to re-evaluate their existing energy policies. For instance, European nations have prepared short-term solutions by releasing strategic oil reserves. However, the IEA pointed out that even these measures have clear limitations, as continuous supply chain disruptions and high oil prices are expected to intensify inflationary pressures. In this report, the IEA lowered its forecast for global oil demand growth in 2026. The surge in global oil prices is severely impacting refining capacity worldwide, and the IEA explicitly warned of an increased risk regarding LPG (liquefied petroleum gas) usage, particularly in developing countries. This suggests that the issue is not confined to developed nations but could bring a complex crisis to the economies of developing countries, which are more vulnerable to energy price fluctuations. According to the IEA's analysis, the possibility of an overall global economic slowdown is also increasing, confronting governments with the dual challenge of ensuring both energy security and economic stability. This situation also poses significant challenges for South Korea. As a country heavily reliant on overseas imports for most of its energy, South Korea's economic performance is directly linked to the stability of its oil supply and demand. High energy dependency has been a major factor shaking the Korean economy during several past periods of rising oil prices. The supply chain disruptions and soaring oil prices highlighted in the IEA report will inevitably have direct and indirect impacts on highly energy-import-dependent countries like South Korea. In particular, the reduced flow of petroleum products through the Strait of Hormuz is highly likely to directly hit South Korea's oil supply and demand. Meanwhile, high oil prices are increasing the actual cost burden across various industries in South Korea. Major refining companies are experiencing reduced operating profits due to increased crude oil purchasing costs, while key export industries such as semiconductors and automobiles are also being affected by rising production costs. This is not merely a corporate issue. It is likely to lead to reduced consumer spending due to an economic slowdown, increased living costs for the public, and even hikes in public service fees. These economic repercussions will amplify social impacts, making it even more imperative for the government and private sector to collaborate in seeking solutions. High Oil Prices and Supply Chain Disruptions: Challenges for the Korean Economy The IEA's emphasis on the risks of LPG use in developing countries has significant implications for South Korea. Although South Korea is not a developing country, its reliance on various petroleum products, including LPG, remains high during its energy transition. Surging oil prices and supply instability could lead to increased household energy costs, directly burdening the livelihoods of ordinary citizens. Furthermore, the IEA's point about the impact on refining capacity presents structural challenges for South Korea's major refining industry. Domestic refiners face the dual burden of responding to crude oil price volatility while also preparing for a long-term transition to a post-oil economy. So, what path should South Korea take moving forward? First, it must re-evaluate its strategic reserve utilization strategy and establish additional safeguards to prepare for potential supply chain disruptions. As the IEA report emphasizes, while major European countries are responding by releasing strategic reserves, these are merely short-term measures. South Korea can also consider relea