South Korea and Japan flag economic risk of Middle East war

Both countries seeking measures to deal with possible rise in energy prices

An oil tanker in the Mediterranean Sea as seen from Ashkelon, Israel. Japan and South Korea are worried about energy supplies from the Middle East. © Reuters

STEVEN BOROWIEC and MITSURU OBE, Nikkei staff writers

October 10, 2023 21:03 JST

Updated on October 11, 2023 14:45 JST

SEOUL/TOKYO -- Top officials in South Korea and Japan on Tuesday highlighted potential risks from the conflict in the Middle East, including the possibility of higher energy prices, at a time when policymakers are already grappling with low growth and rising consumer prices.

The office of South Korean President Yoon Suk Yeol addressed concerns spurred by the war between Israel and militant group Hamas, saying, "Now is not the time for blind optimism," while pledging to monitor the real economy for potential effects. Yoon has instructed officials to prepare response measures.