South Korea is examining precautionary contingency plans should the United States call for international sanctions against Iranian oil exports, government sources said Thursday.
Sources at the Ministry of Knowledge Economy said policymakers are looking at various scenarios, including diversification of crude oil imports and use of strategic reserves, to limit any fallout.
As of last year, Seoul imported 8.7 percent of its oil from Iran, and any action that cuts off supply could have serious repercussions on the overall economy.
The move came as Washington said it will release a list of sanctions against Iran on Oct. 1. The country is suspected of engaging in a nuclear buildup program that could disrupt the global non-proliferation process.
Robert Einhorn, the U.S. State Department's special advisor for non-proliferation and arms control, was in Seoul this week to exchange views
on measures that could be taken against Iran.
Ministry officials also said they plan to offer legal consulting services to local companies that sell cars, consumer electronic goods and build industrial plants for Tehran. The consulting service could allow companies
to better understand what is included in the sanctions that are expected to be implemented by Washington.
Others, however, speculate that the U.S. may not directly ban Iran's crude exports since such a move could cause a serious shortfall in supply
and trigger a price surge. Such a development could hurt ongoing global recovery efforts.
"Iran is the fourth largest supplier of oil in the world and if oil shipments were blocked, it could lead to a distortion in the market," a
government insider said on condition of anonymity.
He said there were widespread views in the international energy community that Washington will not try to block Iranian oil exports but rather concentrate on other areas such as hindering financial and industrial transactions.