Taipei: Economics Minister Kuo Jyh-huei stated that a potential blockade of the Strait of Hormuz by Iran could lead to increased crude oil prices, subsequently affecting Taiwan's fuel prices and consumer price index (CPI).

According to Focus Taiwan, less than 20 percent of Taiwan's crude oil and natural gas imports currently pass through the Strait of Hormuz. Minister Kuo explained during a legislative hearing that any blockade would compel ships to take longer alternative routes, delaying deliveries and inevitably causing oil prices to rise. He noted that a 10 percent increase in oil prices could potentially raise Taiwan's CPI by approximately 0.3 percent.

Foreign media reports indicate that Iran is preparing to close the Strait of Hormuz, a critical route for energy resource shipping, following U.S. airstrikes on its nuclear facilities. In response, the Ministry of Economic Affairs is assessing the impacts of fluctuating oil prices, while CPC Corp., Taiwan, is devising measures to mitigate the potential effects on the CPI.

The Cabinet has also issued a statement indicating that Vice Premier Cheng Li-chiun has mobilized the Price Stabilization Task Force. This team, comprising officials from relevant ministries and agencies, will monitor potential fluctuations in oil prices and consumer goods, given the rising geopolitical tensions in the Middle East and the anticipated increase in international crude oil prices.