Illustration of LNG storage tanks at a refinery or processing plant. The Iran war is creating momentum for the United States, South Korea, and Japan to develop shared strategic oil and LNG reserve arrangements. (Shutterstock/Dancing_Man)

How the Hormuz Energy Crisis Is Reshaping US, South Korea, and Japan Energy Cooperation

Share this link on Facebook

Share this page on X (Twitter)

Share this link on LinkedIn

Share this page on Reddit

Email a link to this page

The Iran war is creating momentum for the United States, South Korea, and Japan to develop shared strategic oil and LNG reserve arrangements.

The United States, South Korea, and Japan have been seeking a successful trilateral approach to augment their respective energy security and industrial competitiveness. How to leverage the complementary strengths of the three nations in areas such as nuclear energy and critical minerals has been a topic of active discussion in recent years. While these areas remain important, in light of the Iran War, the oil and gas sector has eclipsed nuclear energy and critical minerals currently as an area for urgent trilateral cooperation.

The war has caused multiple challenges to the energy industry in the Persian Gulf. Military actions have damaged multiple oil and gas production fields and export infrastructure in the region. Also, the de facto closure of the Strait of Hormuz has significantly reduced oil and gas shipments from the Persian Gulf and raised prices. South Korea and Japan are among the key economic victims of the energy crisis stemming from this war, given their high import reliance on Middle Eastern oil and gas. For example, the Middle East accounts for over 70 percent of South Korea’s and 90 percent of Japan’s crude oil imports. 

The United States Emerges as a Critical Energy Security Backstop

While no single supplier can fill the gap left by the Middle Eastern........

© The National Interest