South Korea Braces for Economic Impact Amid Middle East Tensions

South Korean President Lee Jae Myung on Monday voiced alarm over the "very urgent" situation in the Middle East, warning of instability in financial markets due to escalating uncertainties. He urged his senior aides to be ready with extra measures within the proposed budget should the need arise.

Stock exchanges across Asia took a hit, with major indexes dipping amid investor anxiety over Iran's possible retaliation against U.S. attacks on its nuclear sites. Oil prices soared to five-month peaks, sparking fears that spiraling costs could exacerbate global inflation.

In a country heavily reliant on exports and with 72% of its crude oil coming from the Middle East, South Korea faces the possibility of severe economic repercussions. President Lee chose to skip an upcoming NATO summit citing the instability, emphasizing the urgency of a robust response system.

(With inputs from agencies.)