A prolonged Middle East conflict is pushing energy costs back to the center of Korean business planning. Korea National Oil Corporation data cited in local reporting put September’s average Brent crude price at $100.4 a barrel and West Texas Intermediate at $96.3. Futures prices for both benchmarks recently reached their highest levels in roughly four months, reflecting renewed concern over supply routes and regional security.
For Korean companies, the pressure is broader than fuel alone. Higher crude prices can raise transport, petrochemical and manufacturing costs, while the US Federal Reserve’s latest rate increase adds a second burden through financing costs and the exchange rate. Businesses that have less pricing power, especially smaller suppliers and service firms, may have more difficulty passing those expenses on to customers.
The timing is particularly awkward before Chuseok, when many small and midsize companies face payroll, bonus and working-capital needs at the same time. The risk is not that every company is hit equally, but that energy and borrowing costs rise together after a period in which firms had expected conditions to stabilize. Oil prices, the won and domestic borrowing rates will show whether the latest pressure is temporary or becomes a broader cost shock.