ED Korea's future hinges on energy security

A map showing the Strait of Hormuz is seen in this photo illustration created March 23. Reuters-Yonhap

Unlike previous Middle East conflicts, the current war in Iran is no longer a distant concern for countries like Korea that rely heavily on imported oil to sustain their economies. Just a month after the U.S.-Israeli strikes began on Iran, Korea is already feeling the strain of volatile oil prices. Iran’s selective attacks on ships passing through the Strait of Hormuz — which accounts for around 20 percent of global crude oil transit — along with the resulting disruptions to global supply chains, have begun to shake the world economy.

The situation is likely to deteriorate further as Tehran-backed Houthi rebels in Yemen have joined Iran in the conflict against the U.S. and Israel. Last week, the Houthis launched a barrage of missiles targeting what they described as Israel’s “sensitive military facilities.”

The involvement of the Yemeni rebels raises serious concerns about global supply chains, making further disruptions increasingly likely. The Houthis have a track record of blocking shipping routes in the Red Sea during Yemen’s civil war, and they may attempt similar actions again — just as Iran has disrupted traffic through the Strait of Hormuz. The Red Sea accounts for roughly 10 percent of global crude oil shipments and serves as a key trade corridor between Korea and Europe.

Due to heightened maritime insecurity, Korean vessels have already been avoiding the Red Sea, opting instead for longer routes around the Cape of Good Hope in South Africa. This detour adds 10 to 14 days to shipping times and increases both fuel and insurance costs, placing additional strain on already burdened Korean importers.

If the Houthis move to block the Red Sea, oil prices are likely to climb even higher. On Monday, Brent crude surged to $115.73 per barrel, its highest level since 2022.

Iran — and potentially the Houthis — demonstrated how even actors with relatively limited military and economic power can weaponize critical maritime routes and disrupt global supply chains. As a result, countries like Korea and Japan, which are heavily dependent on imported energy, suffer the consequences.

Energy security is a critical lesson Korea must take from the ongoing Middle East conflict.

As a resource-scarce nation, Korea will inevitably continue to rely on imported crude oil unless alternatives replace it as the primary fuel source. However, there are steps the country can take to reduce its dependence. Nuclear energy is one such option. Currently, nuclear power accounts for over 30 percent of Korea’s electricity generation, making it a cornerstone of the country’s energy mix alongside coal, natural gas and renewables.

Unlike oil and natural gas, nuclear energy is largely insulated from external geopolitical shocks, providing a stable and reliable source of electricity. At the same time, Korea should continue expanding renewable energy to further reduce reliance on imported fuels.

To build a resilient energy system capable of withstanding external shocks such as conflicts in the Middle East, policy consistency is essential. Unfortunately, energy policy has often been shaped by populist pressures.

Despite its long-standing role as a stable energy source, nuclear power has periodically been portrayed as undesirable. The Fukushima nuclear disaster in Japan in 2011 marked a turning point, prompting policymakers to shy away from the risks of nuclear energy. Under the 2017-22 Moon Jae-in administration, Korea shifted its energy policy, with Moon pledging to phase out nuclear power and halt plans for new reactors. Ironically, while restricting nuclear development at home, the administration continued to promote Korea’s nuclear technology abroad as safe and reliable. This apparent contradiction drew criticism from some international observers.

The rise of the artificial intelligence (AI) era is now reshaping the energy debate once again. Data centers require vast amounts of electricity, prompting policymakers to reconsider nuclear energy as a practical and scalable solution.

The Iran conflict carries complex lessons for different countries, depending on their level of energy security. Most notably, it may influence the global race for AI dominance. Countries like the United States, which enjoy relatively strong energy security and are less exposed to disruptions in oil supply chains, can continue investing in AI infrastructure. In contrast, countries like Korea — and possibly China — may face setbacks in the AI race due to their greater vulnerability in energy security.

In the age of AI, energy security is no longer optional — it’s essential.