ISTANBUL

South Korean President Lee Jae Myung urged the government Tuesday to prepare for the worst-case economic fallout if the Middle East conflict persists, according to a local media report.

Speaking at a Cabinet meeting in Sejong, Lee warned that the US-Israeli war in Iran, now in its third week, has disrupted traffic in the Strait of Hormuz, a key global oil shipping route, posing risks to South Korea’s energy-dependent economy, Yonhap News Agency reported.

"Measures must account for the possibility of a prolonged crisis," Lee said, calling for intensified diplomatic efforts to secure crude oil and alternative energy sources.

He also suggested potential emergency measures including export controls and increased nuclear power plant operations.

South Korea has already implemented a fuel price cap system and secured 6 million barrels of crude from the United Arab Emirates.

Lee noted that fuel prices have stabilized somewhat but warned that further escalation could threaten price stability and people’s livelihoods.

He called for the swift preparation of a supplementary budget to support vulnerable groups, export companies and non-capital regions and urged the National Assembly to review the proposal promptly.

Tensions in the Middle East have escalated since the US and Israel launched a large-scale attack on Iran on Feb. 28, killing more than 1,300 people so far, including then-Supreme Leader Ayatollah Ali Khamenei.

Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq and Gulf countries hosting US military assets.

Iran has effectively closed the Strait of Hormuz since early March, pushing oil prices higher. The key shipping lane normally handles about 20 million barrels of oil a day, roughly 20% of the global supply.