Acting Finance Minister Lee Hyoung-il on Monday warned of heightened volatility in global financial and energy markets amid escalating tensions in the Middle East.

Lee made the remarks while presiding over a meeting on macroeconomic trends and risks, citing growing uncertainty after the US military involvement in the region.

“Following the US airstrikes, Iran’s parliament passed a motion to close the Strait of Hormuz, highlighting the significant uncertainty surrounding the situation,” Lee said. “Global oil prices have already opened 2 to 3 percent higher today, signaling increased volatility in international energy markets.”

Lee instructed related agencies to stay on high alert and closely monitor international energy prices and supply-demand dynamics, emphasizing the need for prompt and coordinated responses.

“Relevant authorities must maintain heightened vigilance and conduct thorough inspections of international energy prices and market conditions,” he added.

As part of efforts to ease the burden on consumers, the government earlier decided to extend its fuel tax reduction measures. According to the Ministry of Economy and Finance, the current cuts — a 10 percent reduction of tax on gasoline and 15 percent on diesel and liquefied petroleum gas — will be extended for an additional two months, through the end of August.

“With the two-month extension of the fuel tax cuts, the government will intensify monitoring of the oil market to prevent illegal practices that take advantage of rising prices,” Lee said. (Yonhap)