Fuel tax cuts set to expire at the end of October will be extended to the end of the year.

Finance minister Choo Kyung-ho announced the move during an emergency meeting with economic ministers on Monday, saying risks in the energy sector and supply chains may once again increase due to the conflict between Israel and the Palestinian militant group Hamas.

The minister assessed that although the armed conflict increased volatility in global oil prices, its direct impact on the country’s energy supply, financial market and real economy is limited. 

Choo said, however, that oil prices could jump, which will cause greater volatility in the real economy and financial and foreign currency markets depending on developments.

The minister vowed to enhance monitoring of the financial market and the real economy and to take timely measures when necessary in coordination with related ministries.