Economy Minister Watches Iran Conflict Amid Energy Security Concerns

TaiwanPlus News

Taiwan’s economy minister, J.W. Kuo, says a potential war in the Middle East will have limited effects on Taiwan’s electricity prices, despite the country’s almost total reliance on energy imports.

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00:00Will war in the Middle East affect Taiwan's economy?

00:03That question was put to the country's economy minister, J.W. Guo, in the legislature today,

00:08after weeks of conflict between Iran, Israel and the U.S.

00:13Guo indicated that the impact would be minimal, despite the country's heavy reliance on foreign energy.

00:30In Taiwan, oil and gas are needed for both fuel and electricity,

00:50and about 80 percent of its electricity comes from burning fossil fuels.

00:55About 77 percent of its oil and 28 percent of its natural gas comes from the Middle East.

01:00Making the country vulnerable to disruptions in the region.

01:03Energy security has long been a concern for Taiwan,

01:06especially with the potential of a blockade by China,

01:09which has consistently threatened to take Taiwan by force.

01:12And energy is one of the most controversial topics in Taiwanese politics,

01:16especially after the country shut down its nuclear reactors,

01:19while also aiming for net zero carbon emissions by 2050.

01:23The government says it's set up a special task force to manage the risks of a potential Middle East conflict,

01:29and says that even large swings in oil prices and exchange rates will have only minimal impact.

01:35But as the prospects of both a global trade war and a real war loom,

01:39they may need to keep sending reassurances, with many people still being on edge here.

01:44John Hsu and Chris Gorin in Taipei for Taiwan Plus.

01:46John Hsu and Chris Gorin in Taipei for Taiwan Plus.

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