EU Embargo On Iranian Oil To Impact Korea's Oil Supply, Prices
With the European Union's embargo on Iranian crude oil to take effect on July 1st, there are concerns that Korea will also face a drop in oil supply and higher oil prices.
Under the sanctions, the EU also prohibits the insuring of ships carrying Iranian oil.
Korea has reinsurance policies from European insurance companies and because oil carriers can't be operated without those policies that can cover accident compensation, Korea won't be able to import ANY oil from Iran.
Experts say Korea will inevitably face a shortage in oil supply as close to 10 percent of Korea's oil imports come from Iran, leading to an increase in oil prices.
EU nations decided back in January to place an embargo on Iranian oil purchases amid heightening speculations, that Tehran is developing nuclear weapons under the guise of an energy program.
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