Key facts
- President Lee Jae Myung ordered the retention of oil price caps.
- The measure will remain in place until oil price uncertainty completely recedes.
- The decision was prompted by renewed confrontation in the Middle East.
- Related measures, including oil tax cuts, will also be maintained.
- President Lee is currently on a state visit to Brazil.
South Korean President Lee Jae Myung, currently on a state visit to Brazil, has ordered senior officials to maintain oil price caps until price uncertainty completely recedes. The directive, issued during a virtual meeting with aides from Brasilia on July 26, 2026, comes in response to the renewed confrontation in the Middle East and the likelihood of continued oil price volatility.
President Lee emphasized the need for preemptive efforts to minimize the impact of volatile oil prices on domestic costs. He also instructed officials to continue related measures, such as oil tax cuts, and to consider further actions if the situation deteriorates. The president had previously concluded a visit to San Francisco focused on AI cooperation before embarking on his South America tour, which includes Brazil for a summit with President Lula and a business roundtable.